Indonesia: Upstream oil and gas activities - KPMG Global
Share with your friends

Indonesia: Cost recovery, income tax: upstream oil and gas activities

Indonesia: Upstream oil and gas activities

Government Regulation No. 27 / 2017 (PP 27) revises earlier guidance (Government Regulation No. 79 / 2010 (PP 79)) regarding cost recovery and income tax on upstream oil and gas activities. The new rules have an effective date of 19 June 2017.


Related content

The goal of PP 27 was to address certain concerns raised by various stakeholders regarding PP 79, and aim at improving the investment climate within the industry and at increasing the discovery of oil and gas reserves. It also has been expected to enhance legal certainty in upstream oil and gas investment activities.

PP27 is viewed as clarifying and resolving certain long-disputed industry issues—such as cost sharing, head office costs allocation, and land and building tax issues. However, not all uncertainties have been resolved.


Read a July 2017 report [PDF 221 KB] prepared by the KPMG member firm in Indonesia

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


Request for proposal