President Joko “Jokowi” Widodo has signed new Government Regulation Number 27 Year 2017 regarding the cost recovery and income tax for the upstream oil and gas sector. This new regulation is a revision for PP Number 79 Year 2010. Arcandra Tahar, Vice Minister for Energy and Minerals Resources (ESDM), the government is hearing over such problems faced by contractors or investors (KKKS) in doing exploitation and exploration. Under this new regulation, the search of oil and gas reserves will get no tax burden. On the exploitation stage, the contractors would also be free of tax for their portion of split.
