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REPUBLIC OF INDONESIA STATE NEWS
No. 945, 2011 MINISTRY OF FINANCE. The Allocation Fee Is Not Available. Spending Limits.
REGULATIONS OF THE Indonesian REPUBLIC FINANCIAL MINISTER
NUMBER 256 /PMK.011/ 2011
ABOUT
LIMITATION OF EXPENSE ALLOCATION OF INDIRECT COSTS
THE CENTRE THAT CAN BE RETURNED IN THE COUNT FOR
RESULTS AND INCOME TAX FOR EMPLOYMENT CONTRACTOR
SAME OIL AND GAS
WITH THE GRACE OF GOD ALMIGHTY
THE FINANCE MINISTER OF THE REPUBLIC OF INDONESIA,
DRAW: that to implement the provisions of Article 12 paragraph (2) of the letter f 3 of the Government Regulation No. 79 of 2010 on the Cost of Applicable Operation and the Treatment of Income Tax in the Field of Upper Business Oil and Gas of the Earth, it needs to establish The Finance Minister's Rules on Limitation Restrictions of Indirect Cost-of-office Expenses Are Returned In The Calculation For The Results And Income Taxes For Petroleum Contractors and Earth Gas;
Given: 1. Law No. 6 of 1983 on General Terms and Taxation Methods (sheet of State of the Republic of Indonesia in 1983 Number 49, Additional Gazette of the Republic of Indonesia No. 3262) as it has been several times amended by Law Number 16 Of 2009 (Sheet State Of The Republic Of Indonesia In 2009 Number 62, Addition Of State Sheet Indonesia Number 4999);
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2. Law No. 7 Year 1983 on Income Tax (State of the Republic of Indonesia 1983 Number 50, Additional Gazette Republic of Indonesia Number 3263) as has been several times amended last by Invite-Invite Number 36 2008 (sheet State Of The Republic Of Indonesia 2008 Number 133, Additional Gazette Of The Republic Of Indonesia Number 4893);
3. Government Regulation No. 79 of 2010 on the Cost of Repatriable Operations and the Treatment of Income Tax in the Fields of the Upper Business of Petroleum and Earth Gas (State of the Republic of Indonesia 2010 No. 139, Additional Gazette of the State of the Republic of Indonesia) Indonesia No. 5173);
4. President's Decision No. 56/P of 2010;
DECIDED:
STIPULATING: THE FINANCIAL MINISTER ' S REGULATION ON THE LIMITATION OF EXPENSE ALLOCATION EXPENSES INDIRECT TO THE CENTRAL OFFICE WHICH CAN BE RETURNED IN THE COUNT FOR RESULTS AND TAXES THE OIL AND GAS CONTRACTORS ARE EARNING.
Article 1
In Regulation of this Minister referred to:
1. Earth Oil And Gas Cooperation Contract Contractor, which for the next time is called a Contractor, is a fixed entity or business entity that is set to conduct exploration and exploitation of a work area based on a contract of cooperation. with the Managing Board.
2. The Central Office is an entity that conducts funding and/or investment activities to support petroleum operations for its affiliates, including in Indonesia, and provides services to support operations for its affiliates and to make reports. financial consolidation.
3. A Managing Board is a body formed to control the activities of upstream efforts in the field of Petroleum and Earth Gas.
4. Petroleum operations are activities that include exploration, exploitation, transport, closure and legacy remains (plug and abandonment) as well as the recovery of the former mining (site restoration) of petroleum and gas.
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2011, No. 9453
5. Exploration is an activity that aims to obtain information about geological conditions to find and obtain an estimated reserve of petroleum and gas in the area of the work specified.
6. Exploitation is a series of activities aimed at generating oil and gas earth from a defined work area, which consists of drilling and well settlement, construction of means of transport, storage, and processing for the the separation and purification of petroleum and gas in the field as well as other activities that support it.
7. Capital cost (capital cost) is an expense made for equipment or goods that have a lifetime of more than 1 (one) year of interest in the year running through a depreciation.
8. Non-modal cost (non capital cost) is a fee issued on a running year operating event that has a lifetime of less than 1 (one) years, including surveys and intangible drilling cost.
Section 2
Spending allocation of indirect costs the Central Office may be returned in the calculation for results and becomes a gross income sacrifice in the contracting Income Tax calculation.
Article 3
(1) The expense of the allocation of indirect costs of the Central Office can be returned and the gross income reduction as referred to in Section 2 must meet the requirements as follows:
a. be issued to obtain, collect, and maintain revenue in accordance with the provisions of the invite-invited and direct-related regulations with the activities of Operation Permination in the region of the Contracting Contracts in Indonesia;
b. used to support business or activities in Indonesia;
c. The contractor has handed over a consolidated financial report of the audited Central Office; and
d. The contractor has submitted the basis of the allocation of indirect costs of the Central Office:
1) for the Contractor on the Time of Exploration, namely the Work and Budget Plan that has been approved by the Managing Board;
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2) for Contracting at the Exploitation period, namely:
a) the written approval method of the allocation of indirect costs of the Central Office by the Managing Board, in terms of detailed study (detailed study) by the Managing Board; or
b) the proposal of an indirect cost allocation method of the Central Office has been declared complete by the Managing Board, in which case has not been conducted a detailed study (detailed study) by the Managing Board.
(2) In the terms of the terms of the letter a, letter b, letter c and/or the letter d is not met by Contractors, expenditure on indirect cost allocations cannot be returned in the calculation for results and does not become a gross income sacrifice in the calculation of Income Tax.
Article 4
(1) The magnitude of the expenditure allocation of indirect costs of the Central Office as referred to in Article 2 is specified:
a. most high 2% (two percent) of the amount of Capital Cost expenditure and Cost Not Modal during Exploration in the Contractor's work area in Indonesia;
b. the highest of 2% (two percent) of the amount of Capital Cost and Non-Capital Cost expenditure in the year concerned during the exploitation of the Contractor's work region in Indonesia,
with the example of the calculation as listed in The attachment, which is an inseparable part of this Minister Rule.
(2) The Time of Exploration as referred to in paragraph (1) the letter of a count from the effective date of the cooperation contract until the year of approval of the development plan First pitch in a contractor workspace.
(3) The exploits of the as set forth in paragraph (1) the letter b (b) of the end of the Exploration period as referred to in paragraph (2) to the expiration date of the contract of cooperation.
(4) In terms of the quantity of expenditure allocation the indirect cost of the Office The center that has been approved by the Managing Board is smaller than the amount of expenditure allocation of indirect costs of the Central Office as it is referred to in paragraph (1), the amount of expenditure allocation of the indirect costs of the Central Office can be returned in the calculation for the results and become the gross income reduction in the The Income Tax calculation for the Contractor does not exceed the expense amount that has received approval from the Managing Board.
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Article 5
The Regulation of the Minister entered into force on 1 January 2012.
In order for everyone to know, order the Minister of the Ordinance with its placement in the News of the Republic of Indonesia.
Stipulated in Jakarta on December 28, 2011
FINANCE MINISTER
REPUBLIC OF INDONESIA,
AGUS D.W. MARTOWARDOJO
UNDRASED in Jakarta on 28 December 2011
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
AMIR SYAMSUDIN
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EXAMPLE OF THE INDIRECT COST ALLOCATION COUNT
THE CENTRAL OFFICE WHICH CAN BE RETURNED IN THE COUNTING
FOR THE RESULTS AND INCOME TAX FOR
CONTRACTOR FOR OIL AND GAS COOPERATION CONTRACT.
1. Examples of calculating the quantity allocation of indirect costs of the Central Office in Exploration:
Topaz Ltd. is a moving company in the field of oil and petroleum mining, established in the country X.
In 2011, Topaz Ltd. win the tender offer block of the Bima migas in the sea of Java. Topaz Ltd. forms Topaz Bima Ltd. in the country Z and lists the BUT Topaz Bima Ltd. in the Office of Tax Services Agency and Stranger People Two. Topaz Bima Ltd. signed a contract with the Managing Board of the Earth Oil and Gas Corporation (BP Migas) in 2011.
In 2015, Topaz Ltd. obtained the first approval of the field development plan (POD) in the Bima Block of BP Migas.
Following the data allocation of the indirect costs of the Central Office on BUT Topaz Bima Ltd. during the Exploration period (2011) up to 2015):
Year% Alocation indirect costs Central Office
Total Expense Alocation Cost not
immediate Central Office
2011 2.00% $100,000.00 $2,000,000.00
2012 4.00% $180,000.00 $7.200,000.00
2013 1.00% $250,000.00 $2,500,000.00
2014 3.00% $200,000.00 $6.000,000.00
2015 2.00% $220,000.00 $4.400,000.00
The sum of $950,000,000.00 $22,100,000.00
a. Examinations were conducted prior to the approval of the POD:
In 2013 there was the assignment of an examination of BUT Topaz Bima Ltd. for the tax year 2012.
Based on the results of the examination, there is no correction of the total expenditure, hence the magnitude of the indirect cost allocation of the Central Office which could be the gross income reduction in 2012 by the BUT
ATTACHMENT OF MINISTERIAL REGULATION FINANCE REPUBLIC OF INDONESIA NUMBER 256 /PMK.011/ 2011 ON LIMITATION OF EXPENSE ALLOCATION SPENDING INDIRECT CENTRAL OFFICE CAN BE RETURNED IN THE CALCULATION FOR RESULTS AND INCOME TAX FOR CONTRACTING CONTRACTORS OF PETROLEUM AND GAS COOPERATION CONTRACTS.
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2011, No. 9457
Topaz Bima Ltd is US$ 7,200,000.00 (4% X US$ 180.000.000.00).
Despite the magnitude of the indirect cost allocation of the Central Office which could be gross income reduction in 2012 (US$7.200,000) more than 2%, that is 4%, by the checking team not to be correction, due to the maximum limitation of 2% for the time Exploration is not per year but is 2% of the total expenditure during the time of exploration (adjustments were made in the last year of the Exploration period).
b. A check was conducted on the year of the approval of the POD:
In 2016 there was an examination assignment of BUT Topaz Bima Ltd. for the tax year 2015.
The allocation of indirect cost allocation of the Central Office which could be the gross income reduction in 2015 is as follows:
the allocation of indirect cost of the Central Office according to KKKS = $22,100,000.00 maximum limit The charging allocation of indirect costs for the Central Office during Exploration
2% X $950.000.00 = $19.000.000.00 = $19.000,000.00 = $19.000.000.00 = $19.000.000.00 = $19.000.000.00 = $19.000.000.00 = $19.000.000.00 = The gross during the Exploration period is the maximum limit of US$ 19.000.000.00.
Adjustment (correction) indirect cost allocation of the Central Office in 2015 for the whole time of Exploration is as follows:
The allocation of indirect costs of the Central Office according to KKKS = $22,100,000.00 limit maximal load The allocation of indirect costs for the Central Office during Exploration = ($19.000.000.00)
Correction $3.100,000.00
So the magnitude of the Central Office indirect cost allocation in 2015 is as big as:
The allocation of indirect costs of the Central Office according to KKKS = $4.400,000.00 correction of indirect cost allocation of Central Office = ($3,100,000.00) The allocation of indirect costs of the Central Office can be charged = $1,300,000.00
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Here is the summary of charging the allocation of indirect costs of the Central Office on BUT Topaz Bima Ltd. during the Exploration period (2011 to 2015):
Year
%
Alocation Fee is not
directly Central Office
According to KKKS Examination
Total Spending
Realisation Cost
indirect Central Office
Total Spending
The allocation cost indirect Central Office
2011 2% $100,000.00 $2.000.00 $100,000.00 $2.000.000.00
2012 4% $180,000.00 $7.200,000.00 $180,000.00 $7.200,000.00
2013 1% $250,000.00 $2,500,000.00 $250,000,000.00 $2,500,000.00
2014 3% $200,000.000.00 $6.000,000.00 $200,000.00 $6.000.000.00
2015 2% $220,000.00 $4.400,000.00 $220,000.00 $1,300,000.00
The amount of $950.000.00 $22,100,000.00 $950.000.00 $19.000,000.00 $19.000.000.00
c. In terms of the percentage of indirect costs the Central Office before the POD year has exceeded 2% of the total expenditure during Exploration:
In terms of the magnitude the percentage of the allocation of indirect costs of the Central Office of BUT Topaz Ltd. in the example above, In 2014, at 5%, the total cost allocation was indirect to the Central Office for 2014 to be US$ 10,000,000.00 and the total allocation of indirect costs of the Central Office was charged by BUT Topaz Ltd. during the exploration period. to be US$ 26.100,000.00, then the magnitude of the allocation of indirect costs of the Office The center that can be the gross of gross income during the Exploration period is the maximum limit, which is US$ 19.000,000.00.
Adjustment (correction) indirect cost allocation of the Central Office in 2015 for the whole time of Exploration is as follows:
The allocation of indirect cost of the Central Office according to KKKS = $26.100,000.00 limit maximal load The allocation of indirect costs for the Central Office during Exploration = ($19.000.000.00)
Correction = $7.100,000.00
So the magnitude of the Central Office's indirect cost allocation in 2015 is as big as:
The allocation of indirect costs of the Central Office according to KKKS = $4.400,000.00 correction of indirect cost allocation of the Central Office = ($7.100,000.00) the allocation of indirect costs of the Central Office can be charged = ($2,700,000.00)
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2011, No. 9459
Here is the summary of charging the allocation of indirect costs of the Central Office on BUT Topaz Bima Ltd. during the Exploration period (2011 to 2015):
Year
%
Alocation Fee is not
directly Central Office
According to KKKS Examination
Total Spending
Realisation Cost
indirect Central Office
Total Spending
The allocation cost indirect Central Office
2011 2% $100,000.00 $2.000.00 $100,000.00 $2.000.000.00
2012 4% $180,000.00 $7.200,000.00 $180,000.00 $7.200,000.00
2013 1% $250,000.00 $2,500,000.00 $250,000,000.00 $2,500,000.00
2014 5% $200,000.000.00 $10,000.000.00 $200,000.00 $10,000.000.00
2015 2% $220,000.00 $4.400,000.00 $220,000.00 $(2.700,000.00)
The amount of $950.000.00 $26.100,000.00 $950.000.00 $19.000,000.00
d. In the event of a total correction of the expenditure at the time of the Exploration:
In terms of total expenditure of BUT Topaz Ltd. in the above example, based on the results of the examination there was a correction in 2012 of US$ 30,000,000.00 so the total expenditure 2012 from US$ 180,000.00 to US$ 150,000.00, then the bulk allocation of the indirect cost of the Central Office which could be the gross income reduction during the Exploration period is as follows:
2012
Alocations of indirect costs of the Central Office that can be a sacrifice Gross income in 2012:
4% X US$ 150,000.00 = US$ 6.000.000.00
So that for 2012 it was a correction for the magnitude of the indirect cost allocation of the Central Office
the allocation of indirect costs of the Central Office according to KKKS = $7,200,000.00 The indirect cost allocation of the Central Office is based on the results of the examination = ($6.000.000.00)
Correction = $1,200,000.00
Year 2015
The allocation of the allocation of indirect costs of the Central Office can be The gross income reduction in 2015 is as follows:
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The allocation of indirect cost of the Central Office according to KKKS = $22,100,000.00 The maximum load allocation load is indirect to the Central Office for the time of Exploration
2% X ($950.000.00-US$ 30,000.00) = $18.400,000.00
Of the counting above, then the magnitude of the indirect cost allocation of the Central Office which can be the gross income reduction during the Exploration period is the maximum of US$ 18.400,000.00.
Adjustment (correction) indirect cost allocation of the Central Office in 2015 for the whole time of Exploration is as follows:
The allocation of indirect costs of the Central Office according to KKKS = $22,100,000.00 limit maximal load The allocation of indirect costs for the Central Office during the Exploration period = ($18.400,000.00)
Correction = $3,700,000.00
Correction allocation of indirect costs of the Central Office in 2012 based on the results of inspection = ($1,200,000.00) cost allocation indirect Central Office of 2015 based on the results of the check = $2,500,000.00
So that the magnitude of the indirect cost allocation of the Central Office in 2015 is as big as:
the allocation of indirect costs of the Central Office according to KKKS = $4.400,000.00 correction of the indirect cost allocation of the Central Office = ($2,500,000.00) the allocation indirect costs Central Office can be charged = $1,900,000.00
Here is the summary of charging the allocation of indirect costs of the Central Office on BUT Topaz Bima Ltd. during the Exploration period (2011 to 2015):
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2011, No. 94511
Year
% Alocation Cost Not
direct Central Office
According To KKKS Examination
Total Spending
Realization Allocation Fees
indirect Central Office
Total Expenses
Alocations Central Office indirect costs
2011 2% $100,000.00 $2,000.00 $100,000.00 $2,000,000.00
2012 4% $180,000.00 $7.200,000.00 $150,000.00 $6.000.000.00
2013 1% $250,000.00 $2,500,000.00 $250,000.00 $2.500,000.00
2014 3% $200,000.000.00 $6.000.000.00 $200,000.00 $6.000.000.00
2015 2% $220,000.00 $4.400,000.00 $220,000.00 $1,900,000.00
Number $950.000.00 $22,100,000.00 $920.000.00 $18.400,000.00 $18.400,00
e. In terms of the percentage of the indirect costs of the Central Office smaller than 2% during the time of Exploration:
Following the data allocation of the indirect costs of the Central Office on BUT Topaz Bima Ltd. during the Exploration period (2011 to 2015):
Year
% Alocation
indirect costs
Central Office
Total Spending Realization Allocation Fees is not
direct Central Office
2011 1.8% $100,000.00 $1,800,00
2012 1.7% $180,000.00 $3.0600.00
2013 2.0% $250,000.00 $5.000.00
2014 2.2% $200,000.00 $4.400,000.00
2015 1.9% $220,000.00 $4.180,000.00
The amount of $950,000,00 $18.440,000.00
maximum limit Indirect cost allocation of the Central Office during the Exploration:
2% X $950,000,000.00 = $19.000.000.00
From the above counting, then the magnitude of the indirect cost allocation of the Central Office which can be the gross income drain during the Exploration time is US$ 18.040,000.00 so that in 2015 it is not there is an adjustment (correction) of the indirect cost allocation of the Central Office.
2. Examples of calculation of the allocation of the allocation of the indirect costs of the Central Office in the Exploitation:
For the Contracts in the Exploitation period, in submitting the allocation of indirect costs of the Central Office, must convey:
a. consent written method allocation method of indirect cost of the Central Office by the Managing Board, in terms of detailed study (detailed study) by the Managing Board; or
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b. proposal method allocation method indirect cost Central Office has been declared complete by the Managing Board, in case it has not been conducted a detailed study (detailed study) by the Managing Board.
In terms of such requirements above are not fulfilled, then the Contractor was not entitled to impose the allocation of indirect costs of the Central Office.
a. The term of Exploitation after the enactment of this Minister's Regulation:
In 2015, Wajib Tax had submitted the Work and Budget Plan (Work Program and Budget/WP&B) for 2016, as well as the proposal of an indirect cost allocation method The Central Office and has obtained BP's written approval of 2% from 2016 onwards unless there is a change in the allocation method of indirect costs of the Central Office.
In 2016 but Topaz Ltd began to produce. Following data allocation of indirect costs of the Central Office on BUT Topaz Bima Ltd during the lifetime of Exploitation (2016 to 2020):
Year
% Alocation Cost not
directly Central Office
Total Spending Realization Allocation Cost indirect Office
Center
2016 2% $100,000.00 $2,000,000.00
2017 4% $180,000.00 $7.200,000.00
2018 1% $250,000.00 $2,500,000.00
2019 3% $200,000.00 $6.000.00
2020 2% $220,000.00 $4.400,000.00
The amount of $950,000,00 $22,100,000.00
The allocation of the cost of indirect costs The center that can be a gross income reduction by BUT Topaz Bima Ltd. is as following:
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2011, No. 94513
Year
KKKS BP Approval Migas
*)
%
Alocation Cost not
Central Office
Total Spending (Realization)
Alocation cost indirect Office
%
approved Total Spending
(Approval)
Alocation indirect cost Office
Center
Alocation indirect cost Center Office
2016 2% $100,000.00 $2,000,000.00 2.00% $100,000.00 $2,000,000.00 $2,000,000.
00
2017 4% $180,000.00 $7.200,000.00 2.00% $180,000.00 $3.600,000.00 $3.600,000.
00
2018 1% $250,000.00 $2.500,000.00 1.00% $250,000.00 $2,500,000.00 $2,500,000.
00
2019 3% $200,000.00 $6.000,00 2.00% $200,000.00 $4,000,00 $4,000,00 $4,000,000.
00
2020 2% $220,000.00 $4.400,000.00 2.00% $220,000.00 $4.400.000.00 $4.400,000.
00
Description:
*) In terms of total spending correction (cost correction), the magnitude of the indirect cost allocation of the Central Office which can be gross income reduction is at a maximum of 2% of total expenditure after correction based on the results of the examination.
b. The exploits before the enactment of the Regulation of the Minister:
Zircon Ltd. is a moving company in the field of oil and gas mining, established in the state X.
In 2001, Zircon Ltd. won the bidding tender Bima's migas block in the sea of Java. Zircon Ltd. formed Zircon Bima Ltd. in the Z state and registered the BUT Zircon Bima Ltd. in the Office of Tax Services Agency and Foreign Persons Two.
BUT Zircon Bima Ltd. signed with BP Migas in 2001. In 2010, however, Zircon Ltd. began production.
Following the indirect cost allocation data of the U.S. Central Office, Zircon Bima Ltd. during the Exploitation period (2010 to 2015):
Year
% Alocation Charges were not
direct Central Office
Total Spending Realization Allocation is not
direct Central Office
2010 1.80% $200,000.00 $3,600,000.00
2011 2.00% $220,000.00 $4.400.000.00
2012 2.00% $250,000.00 $5,000,000.00
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2013 2.00% $300,000.00 $6.000,000.00
2014 2.00% $350.000.00 $7.000.000.00
2015 2.00% $300,000.00 $6.000,000.00
In 2011, Wajib Tax submitted WP&B for 2012, and have approved BP Migas without a record.
In 2012, Wajib Tax submitted WP&B for 2013, and has approved BP Migas with a note for an indirect cost allocation of the Central Office for 2013 will be adjusted to the result detailed study performed by BP Migas. After a detailed study BP Migas in 2014 approved the magnitude of the Central Office's indirect cost allocation by 1.8%, and in effect since 2013.
The main allocation of indirect costs of the Central Office which can be gross income decoding by BUT Zircon Bima Ltd. is as follows:
Year
KKKS BP Approval Migas
) *) *
%
Fee allocation is not
directly Central Office
Total Spending (Realization)
Alocation of indirect cost of Central Office
% approved
Total Spending (Approval)
Alocation of indirect charges Office
Center
Alocation indirect cost of Central Office
2010 1.80% $200,000.00 $3,600,000.00 1.80% $200,000.000.00 $3,600,000.00 $3,600,000.
00
2011 2.00% $220,000.00 $4.400.000.00 2.00% $220.000.00 $4.400.000.00 $4.400,000.
00
2012 2.00% $250,000.00 $5.000.000.00 2.00% $250,000.00 $5,000,000.00 $5,000,000.
00
2013 2.00% $300,000.00 $6.000.000.00 1.80% $300,000.000.00 $5.400.00 $5.400,000.
00
2014 2.00% $350.000.00 $7.000,000.00 1.80% $350.000,000.00 $6,300,000.00 $6,300,000.
00
2015 2.00% $300,000.00 $6.000.000.00 1.80% $300,000.000.00 $5.400.00 $5.400,000.
00
Attraction: *) In terms of total expenditure correction (cost correction), magnitude
The allocation of indirect costs of the Central Office which can be gross income reduction is at a maximum of 2% (for the year 2011 s.d. 2012) or according to BP's written approval of Migas (i.e. 1.8% since 2013) of the total expenditure after the correction based on the results of the examination.
MINISTER OF FINANCE REPUBLIC OF INDONESIA,
AGUS D.W. MARTOWARDOJO
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