Here are 17 Oil and Gas Contractors with Outstanding Tax Payments

Based on findings from the Indonesian Supreme Audit Agency (BPK), 17 oil and gas contractors have outstanding tax liabilities for the 2015 tax year totaling US$209.25 million, or approximately Rp2.82 trillion at an exchange rate of Rp13,500 per US dollar. This represents 63 percent of the total tax payable, which amounted to US$330.05 million or Rp4.45 trillion.

EMP ONWJ, an oil and gas Contractor under a Production Sharing Contract (PSC), has the largest outstanding tax liability at US$99.66 million out of a total payable amount of US$130.5 million. This KKKS is a partner of the oil and gas operator in the ONWJ Block. Furthermore, EMP Bentu Ltd, the operator in the Bentu Sengat onshore Riau Block, has outstanding taxes of US$33.63 million. Of the 17 KKKS with outstanding taxes in 2015, six have liabilities exceeding US$10 million.

According to the BPK, the reason these KKKS have not fulfilled their tax obligations is due to negligence and non-compliance by the oil and gas contractors, as well as weak tax control implementation by SKK Migas (Special Task Force for Upstream Oil and Gas Business Activities). The BPK assessed that these contractors ignored SKK Migas's reminders to settle their tax obligations.