Mechanism on Joint Inspections of Cost-Recovery Scheme Contracts Updated: Contractors Now Required to Report Oil-and-Gas Income-Tax Obligations

In an effort to ensure greater legal certainty in terms of the implementation of joint inspections (“Inspections”) and cooperation contracts in the form of profit-sharing contracts with cost-recovery schemes for the upstream oil-and-gas business sector (“Contracts”) within the Aceh region, the Minister of Finance (“Minister”) has decided to adjust various provisions on said Inspections and Contracts, as originally featured under Regulation of the Minister No. 34/PMK.03/2018 on Guidelines in the Form of Profit-Sharing Contracts with Cost-Recovery Schemes (“Regulation 34/2018”)[1] through the issuance of Regulation of the Minister No. 94 of 2023 as the Amendment to Regulation 34/2018 (“Amendment”), which has been in force since 18 September 2023.[2]

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