Govt. Issues Further Fiscal Incentives for Imports of Goods for Upstream Oil-and-Gas Activities

The Minister of Finance (“Minister”) has decided to offer more fiscal incentives in an effort to attract greater investment to the area of upstream oil-and-gas business activities through the issuance of Regulation No. 217/PMK.04/2019 on Import-Duty Exemptions and the Non-Collection of Import Tax for Imports of Goods for Upstream Oil-and-Gas Activities (“Regulation 217/2019”).[1]

When Regulation 217/2019 comes into force, the following legal frameworks which addressed exemptions relating to import duty and non-collection of Taxes in Relation to the Import Framework (Pajak Dalam Rangka Impor - “PDRI”) for upstream oil-and-gas activities will be simultaneously repealed and replaced (together referred to as “Previous Regulations”):