REPUBLIKA.CO.ID, JAKARTA -- Minister of Finance Bambang Brodjonegoro is considering exemption on land and building taxes for oil and natural gas projects. The exemption is a demand from upstream oil and gas regulator, SKK Migas.

SKK Migas earlier said that investor faced big risk on oil and gas exploration, not everyone successfully found oil and gas reserve. "We understand the problem. We are discussing tax exemption," Minister Brodjonegoro said last week. However, he refused to give further details on the exemption.

Tax Analyst Yustinus Prastowo agreed with the plan. He said that tax should be imposed during exploitation phase. "The philosophy of land and building taxes is that it is imposed to those who take advantages from land and building," Prastowo said on Monday, November 24.

The plan on tax exemption has been around for a long time. Prastowo said the uncertainty made the investor conducted wait and see to undergo exploration. He expects new Director General of Tax will take a bold action by exempting the tax.

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