Tax on Pertamina's Subholding Regionalization Reaches US$2 Billion?

Summary

The regionalization process in PT Pertamina's Upstream Subholding is far from over. This cannot be separated from the various consequences of the transformation policy of Pertamina's business organization into sub-holding. One of the consequences that must be paid handsomely by the Oil and Gas State-Owned Enterprise (BUMN) Holding for regionalization of the upstream business is tax liability. The amount of tax that Pertamina has to pay so that regionalization can take place reaches US$2 billion.

However, Pertamina Senior Vice President for Corporate Communication and Investor Relations Agus Suprijanto emphasized that to date, the change of Pertamina's business organization to sub-holding is still in a transition process, including regionalization of the upstream business. One of the focuses of the transition period is solving taxation problems. However, he did not mention the amount of tax Pertamina had to settle. "Currently, the focus is on fulfilling the required aspects, taxation, legal and operational aspects, stakeholder engagement, as well as legal studies on the transfer of shares and assets. However, we have not confirmed all of this," he said.

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