Govt. Offers Fiscal Incentives to Cooperation Contract Oil-and-Gas Contractors

The Minister of Finance (“Minister”) has now refreshed the tax landscape for Cooperation Contract Oil-and-Gas Contractors (Kontraktor Kontrak Kerja Sama - “KKKS”) by setting out the possibility of invoking tax incentives under Regulation of the Minister No. 122/PMK.03/2019 on Facilities of Value Added Tax or Value Added Tax and Luxury-Goods Sales Tax, Land-and-Building Tax, as well as Tax Treatment upon Imposition of Sharing Facilities Operational Cost and Indirect Cost Budgeting Expense of the Headquarters (“Regulation 122/2019”). The new framework has been issued primarily in a bid to boost oil-and-gas production.[1]