Bahlil Blames Aggressive Tax Rules for Low Oil and Gas Exploration

Business and Finance Business and Finance

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Bahlil Blames Aggressive Tax Rules for Low Oil and Gas Exploration

^{Published on 2024-12-19 17:01:00 - Jakarta Globe}

Bahlil noted that investors are required to pay VAT upfront during the exploration phase, even before any resources are discovered.

The article from the Jakarta Globe discusses Indonesian Investment Minister Bahlil Lahadalia's concerns over the country's aggressive tax policies, which he believes are deterring investment in the oil and gas sector. Bahlil highlighted that the high tax rates and the government's approach to taxation are causing a decline in exploration activities, with only 10 exploration wells drilled in 2023 compared to 25 in 2019. He criticized the tax system for not being conducive to attracting investors, pointing out that the cost recovery mechanism, where companies can recover costs before paying taxes, has been misused, leading to a significant drop in state revenue. Bahlil suggested that a more investor-friendly tax environment could boost exploration and increase state income, urging for a policy review to make Indonesia more competitive in the global oil and gas market.

Read the Full Jakarta Globe Article at:
[ https://jakartaglobe.id/business/bahlil-blames-aggressive-tax-rules-for-low-oil-and-gas-exploration ]

N@N

Bahlil Blames Aggressive Tax Rules for Low Oil and Gas Exploration