{"title":"油气产量分成合同总分割方案的合法性","authors":"Fakharsyah Hanif Sugiyartomo","doi":"10.33116/IJE.V2I1.33","DOIUrl":null,"url":null,"abstract":"As an oil producing nation, Indonesia embodied its authority to manage its oil resources through article 33 paragraphs 3 of The Republic of Indonesia Constitution 1945. Regarding the article, this means that the state has the authority to manage Indonesian natural resources, directly or indirectly, through other public and/or private institutions and the profit of such activity shall be for the benefit of the people. This granted the state to appoint other institution, including a National/International Oil Company (NOC/IOC), to manage the exploration and production of oil, as that particular activity is regarded as a high risk and high capital business. In order to do so, according to Law no. 22 2001, the state may appoint a NOC/IOC through a production sharing contract. In this research, it is founded that the regulation that governed a production sharing contract with the gross split mechanism—Ministry of Energy and Mineral Resources Regulation No. 8 2017 jo. Ministry of Energy and Mineral Resources No. 52 2017—does not have a strong legal basis. In overall, the management of oil and gas through the gross split mechanism does not gives a maximum benefit for the state, and does not attract the IOC/NOC interest to explore and produce oil and gas in Indonesia. Therefore, in this paper, the reviewing of oil and gas management through a gross split mechanism is recommended. \nKeywords: management, gross split scheme, income taxes","PeriodicalId":119876,"journal":{"name":"Indonesian Journal of Energy","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2019-02-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"The Legality of Oil & Gas Production Sharing Contract Gross Split Scheme\",\"authors\":\"Fakharsyah Hanif Sugiyartomo\",\"doi\":\"10.33116/IJE.V2I1.33\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"As an oil producing nation, Indonesia embodied its authority to manage its oil resources through article 33 paragraphs 3 of The Republic of Indonesia Constitution 1945. Regarding the article, this means that the state has the authority to manage Indonesian natural resources, directly or indirectly, through other public and/or private institutions and the profit of such activity shall be for the benefit of the people. This granted the state to appoint other institution, including a National/International Oil Company (NOC/IOC), to manage the exploration and production of oil, as that particular activity is regarded as a high risk and high capital business. In order to do so, according to Law no. 22 2001, the state may appoint a NOC/IOC through a production sharing contract. In this research, it is founded that the regulation that governed a production sharing contract with the gross split mechanism—Ministry of Energy and Mineral Resources Regulation No. 8 2017 jo. Ministry of Energy and Mineral Resources No. 52 2017—does not have a strong legal basis. In overall, the management of oil and gas through the gross split mechanism does not gives a maximum benefit for the state, and does not attract the IOC/NOC interest to explore and produce oil and gas in Indonesia. Therefore, in this paper, the reviewing of oil and gas management through a gross split mechanism is recommended. \\nKeywords: management, gross split scheme, income taxes\",\"PeriodicalId\":119876,\"journal\":{\"name\":\"Indonesian Journal of Energy\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":0.0000,\"publicationDate\":\"2019-02-28\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Indonesian Journal of Energy\",\"FirstCategoryId\":\"1085\",\"ListUrlMain\":\"https://doi.org/10.33116/IJE.V2I1.33\",\"RegionNum\":0,\"RegionCategory\":null,\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"\",\"JCRName\":\"\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Indonesian Journal of Energy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.33116/IJE.V2I1.33","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
The Legality of Oil & Gas Production Sharing Contract Gross Split Scheme
As an oil producing nation, Indonesia embodied its authority to manage its oil resources through article 33 paragraphs 3 of The Republic of Indonesia Constitution 1945. Regarding the article, this means that the state has the authority to manage Indonesian natural resources, directly or indirectly, through other public and/or private institutions and the profit of such activity shall be for the benefit of the people. This granted the state to appoint other institution, including a National/International Oil Company (NOC/IOC), to manage the exploration and production of oil, as that particular activity is regarded as a high risk and high capital business. In order to do so, according to Law no. 22 2001, the state may appoint a NOC/IOC through a production sharing contract. In this research, it is founded that the regulation that governed a production sharing contract with the gross split mechanism—Ministry of Energy and Mineral Resources Regulation No. 8 2017 jo. Ministry of Energy and Mineral Resources No. 52 2017—does not have a strong legal basis. In overall, the management of oil and gas through the gross split mechanism does not gives a maximum benefit for the state, and does not attract the IOC/NOC interest to explore and produce oil and gas in Indonesia. Therefore, in this paper, the reviewing of oil and gas management through a gross split mechanism is recommended.
Keywords: management, gross split scheme, income taxes