Role of BPMA Addressed in Relation to the Reimbursement of Taxes for the Acquisition of Taxable Goods and/or Services to Oil-and-Gas Contractors

The oil-and-gas sector continues to be highly lucrative and thus the Indonesian Government is continuing to push for its further development through the introduction of new investment-friendly policies which encompass incentives and business facilities.[1]

In order to achieve this goal, the Minister of Finance (“Minister”) recently issued Regulation No. 119/PMK.02/2019 on Procedures for the Reimbursement of Value-Added Tax or Value-Added Tax and Luxury-Goods Sales Tax for the Acquisition of Taxable Goods and/or Taxable Services to Contractors for Upstream Oil-and-Gas Activities (“Regulation 119/2019”).