Government decided to waive the oil income tax for oil producer (PSC) to lowering the imported costs. With this tax exemption, it is no longer a hindrance for the PSC to sell oil directly to state-owned energy firm PT Pertamina. This policy is expected to reduce imported fuel with a foreign exchange saving up to US$2.3billion by the end of this year. Indonesia booked $89.04 billion in import in the first semester of this year, significantly higher than export at $88.2 billion.
