Professional Documents
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FISCAL
POLITICAL
TERM
CONDITIONS
GEOLOGICAL
CONDITIONS
CLASSIFICATION OF
PETROLEUM FISCAL SYSTEMS
Bonuses
T R Royalties
G O P E Production
GOVERNMENT TAKE
R T R N Sharing
O A O T Taxes
S L F Government
I T C Participation
S CONTRACTOR TAKE
O O E
T
T N N
R C A T T
E O R OPERATING COSTS
L R I
V S E A T
E T C C C L
N O DEVELOPMENT COSTS
O T E
U V S O M
E E T R E
S R EXPLORATION COSTS N
Y * T
Historically:
The system has developed to handle the challenges of a
continuously changing industry.
Todays system:
28% corporation tax
50% special petroleum tax
No signature bonuses
No royalty
Financial costs may be deducted against both the corporation tax and the special
tax.
Uplift allowance against special tax. May deduct 30% of the investment (7.5 %
each year over 4 years).*
Losses may be carried forward with a risk free interest, and is reimbursed if
activities cease.*
Companies outside tax position may each year claim reimbursement of the tax
value of exploration expenses from the Government.*
PRODUCTION
100%
COST
E T S
INDONESIA CONTRACTOR
65% 35%
DMO : 25%
PSC - INDONESIA : 3rd. GENERATION
PRODUCTION 100%
INV. CREDIT
FTP : 20%
DMO FEE
1st 5 Years : Export Price TAX : 48%
Afterwards : 10% Export Price DMO : 25%
Indonesia Share and
Its Percentage Of Gross Revenue
25 70
Indonesia Share (Billion US$)
% Indonesia Share
20 66
64
15
62
60
10
58
5 56
54
0 52
2000 2001 2002 2003 2004 2005 2006
Percentage
60
MM US$
4000 50
3000 40
30
2000
20
1000 10
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Foreign
Canada 26.07 16.46 5.15 6.98 31.22 23.44 -25%
OECD Europe 12.16 9.7 4.54 5.71 16.70 15.37 -8%
Former Soviet Union and
Eastern Europe 4.3 13.00 5.74 5.21 10.04 18.21 81%
Africa 7.55 15.25 4.06 4.09 11.61 19.34 67%
Middle East 6.76 4.67 4.36 4.81 11.12 9.48 -15%
Other Eastern Hemisphere 6.18 8.98 4.26 3.74 10.44 12.72 22%
Other Western Hemisphere 4.98 25.06 1.88 3.17 6.86 28.23 312%
Total Foreign 8.3 11.76 4.25 4.91 12.55 16.67 33%
15
14
13 Chevron
10
9 TOTAL
8
KKKS Indonesia
7
6
2002 2003 2004 2005
9.2
Indonesia
12
Angola
12
China
13
US Onsh
16
Rusia
25
GOM
30
Canada
0 5 10 15 20 25 30 35
-2000
-2500
-3000
-3500
-4000
-4500
2000 2001 2002 2003 2004 2005 2006
Confidence in Prospectivity
1. Indonesia Prospectivity is good. CEOs and Explorationists continue to believe in Indonesia
prospectivity & materiality.
PwC survey (Indonesia 2005) of Indonesia players.
Robertson's International (U.K.) NV Survey (E&P 146 countries). For the period 1999-2004, indicated
much higher interest in Indonesia than depicted by general global FDI ranking, even during 1998-2003!
Robertson's International (U.K.) New Ventures Survey polls E & P companies worldwide with ventures
outside North America and asks them to rate, in a confidential questionnaire, their level of interest in
new ventures in 146 countries. Up to 2004, Indicates much higher interest than depicted by general
global FDI ranking!
1 UK 1 UK 1 Libya 1 Brazil 1 UK
2 Libya 2 Australia 2 Iran 2 Venezuela
2 Australia
3 Indonesia
3 Iraq 3 Libya 3 UK
Trinidad & Tobago 4 Australia 3 Iran
4 Algeria 4 Qatar UK 4 Algeria
5 Algeria 4 Indonesia 5 Australia
5 Egypt 5 Algeria 6 Colombia
6 Australia 5 Libya
6 Equatorial Guinea 6 Iraq 6 Algeria
Iraq 7 Argentina
7 Brazil
7 Indonesia 8 Peru
8 Kazakhstan 7 Indonesia 7 Angola
9 Equatorial Guinea 8 Brazil 8 Angola 8 Argentina 9 Angola
Iran 9 Gabon 9 Brazil 9 Egypt
10 Tunisia Gabon 10 Iraq
11 Morocco 10 Tunisia 10 Egypt 10 Venezuela
IPA study on competitive fiscal terms IPA Workshop Feb 20, 2006 17
# Sumur Explorasi
50
100
150
200
250
300
0
1967
1970
1973
1976
1979
1982
1985
1988
Tahun 1991
1994
1997
2000
2003
2006
Jumlah Pemboran Eksplorasi