BPMigas in doubt over five firms tax debts

Aditya Suharmoko and Alfian , THE JAKARTA POST , JAKARTA Sat, 02/21/2009 10:36 AM Business
Upstream oil and gas regulator BPMigas expresses doubt over the validity of a Finance Ministry document stating that five oil and gas contractors owe the state US$113 million in unpaid income tax bills.
“It seems that the Finance Ministry has received inaccurate data from her staff [the director general of budget management],” BPMigas’s chairman R. Priyono said through a SMS on Friday.
According to a document presented at a meeting between Finance Minister Sri Mulyani Indrawati and a House of Representatives’ committee Thursday, five oil and gas firms — ExxonMobil Oil Indonesia Inc, Joint Operating Body (JOB) of Pertamina and Golden Spike Raja Blok, Kangean Energy Indonesia Ltd, Santos UK (Kakap 2) Ltd and JOB Kodeco Energy Co. Ltd — owe the state US$113 million in unpaid income tax.
The document states that the biggest debtor is Kangean with US$45 million in debt, followed by JOB Kodeco Energy Co. Ltd with total debt at $32.23 million.
ExxonMobil owes US$22.82 million of unpaid income tax, JOB Pertamina–Golden Spike US$10.62 million and Santos UK US$2.39 million.
Priyono did not give details on the inaccuracy of the document.
“You better ask the directorate general for taxation,” he said.
But, the director general of taxation Darmin Nasution could not give clear answers. He suggested journalists ask his colleague Anny Ratnawati, director general of budget management, for confirmation.
“We are still pressing claims and seeking clarification. Several contractors have begun the payment,” said Anny through SMS.
Meanwhile, the chairman of the Development Finance Comtroller (BPKP) Didi Widayadi said that as of December 2008, the five contractors had an obligation to pay a total US$120.94 million in income tax.
“By Dec. 31, the five contractors have paid US$37.45 million. Thus, the remaining unpaid income tax is about US$83.49 million,” Didi said.
ExxonMobil spokesperson Manan Budiman has denied the report, saying that the reportedly $22 million debt mentioned was still under legal dispute.
“ExxonMobil always fulfills its tax obligations,” he said.
Spokesperson for Santos, Dody Mochtar, said the company had paid the income tax. “We paid the US$2.39 million tax by Jan. 31, 2009,” he said.
Pertamina gave the same response. Spokesperson Anang Rizkani Noor said that under the JOB scheme, Pertamina shared responsibility with its partner, the Golden Spike Raja Blok Ltd.
“Pertamina has paid its portion of income tax. Maybe you could confirm with Golden Spike about the unpaid income tax mentioned by the Finance Ministry,” he said.
However, efforts to seek clarification from Kangean, which is the biggest debtor according to the document, were unsuccessful.
Kangean is conducting activities as part of a production-sharing contract, with Energi Mega Persada Tbk (EMP) as a partner.
EMP is a subsidiary of PT Bakrie and Brothers, a business conglomerate controlled by the family of Coordinating Minister for People’s Welfare Aburizal Bakrie.
Indonesia’s oil and gas contracts order private contractors to pay income tax based on as much as 48 percent of their gross revenue, while state-owned Pertamina’s obligation is only 40.5 percent.