Pertamina may lose its assets<\/p>\n
Nana Rukmana, The Jakarta Post, Indramayu, West Java<\/p>\n
The Indramayu regency administration has told state-owned oil and
\ngas firm Pertamina to pay local oil and gas processing taxes or
\nrisk having its assets seized.<\/p>\n
\"This is our last warning to Pertamina, which has failed to
\npay its taxes. We will take serious action against the company if
\nit continues to ignores us,\" Indramayu Regent Irianto M.S.
\nSyafiuddin told the Jakarta Post on Saturday.<\/p>\n
Irianto said his administration was prepared to report
\nPertamina to the State Debt Affairs Agency if the company refused
\nto pay taxes for its operation in Balongan district.<\/p>\n
The Indramayu Legislative Council is backing Irianto's efforts
\nto force Pertamina pay local taxes, as required under local Bylaw
\nNo. 25\/2002. This bylaw, however, has been dismissed by the
\ncentral government for violating higher rulings.<\/p>\n
\"As long as the regent's efforts are based on the law, as well
\nas being good for the people of Indramayu, we will offer our
\nsupport,\" council speaker Iwan Hendrawan said.<\/p>\n
The spokesman for Pertamina's processing unit VI, Suwandi,
\nsaid his unit could not pay the taxes unless the company's
\nheadquarters in Jakarta approved the payment.<\/p>\n
\"The regent's threat is useless. If the regent wants to get
\ntaxes from Pertamina, he should go to Pertamina in Jakarta
\ninstead of us,\" he said.<\/p>\n
Suwandi said the company was in compliance with Law No. 8\/1971
\non Pertamina, which stipulates that 60 percent of the company's
\nnet profit goes directly to the central government.<\/p>\n
The central government later distributes the money to regional
\nadministrations from a general allocation fund.<\/p>\n
Since the issuance of Bylaw No. 25\/2002, the Indramayu
\nadministration has demanded several times that Pertamina pay
\nlocal taxes on oil and gas processing. The company, however, has
\nfailed to respond to these demands.<\/p>\n
According to the bylaw, the administration has the right to
\ncollect Rp 10 (12 US cents) per liter of oil-based fuel and Rp 5
\nper liter of gas fuel processed by Pertamina in the regency.<\/p>\n
Pertamina's Balongan oil refinery has a processing capacity of
\n125,000 barrels of oil per day, which is used to supply fuel to
\nJakarta and along the northern coast of Java.<\/p>\n
However, the Ministry of Home Affairs has ruled that the bylaw
\non local oil and gas processing taxes violates a higher
\nregulation. The ministry has demanded that the Indramayu
\nadministration revoke the bylaw.<\/p>\n
A number of local administrations, since the implementation of
\nregional autonomy, have issued decrees imposing local taxes on
\ncompanies operating in their areas.<\/p>\n
A senior official in the central government told the local
\nadministrations in Riau, East Kalimantan and West Nusa Tenggara
\non Friday to drop plans to impose an industrial waste tax on
\nlocal companies. The official said the administrations plan to
\nimpose the tax without building waste treatment facilities that
\ncan be used by the companies.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pertamina-may-lose-its-assets-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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