Analysis of oil & gas cost recovery model and implementation of new government regulation no. 79/2010
The research is to study and analyze the implementation of production sharing contract (psc) under government regulation (gr) no 22/2001 and cost recovery (cr) model under government regulation no 79/2010 on oil & gas business sector. The research focuses on the psc and cost recovery issues within government with psc company in differences understanding on the cost recovery implementation. This research uses primary data sources and secondary data sources. Primary quantitative data will collect through survey from people who work directly and indirectly in the oil & gas environment such as ioc?çös, tax officer and bp migas officers. Structural equation modeling?çø (sem) is used for hypothesis and analysis by utilize amos software version 20 to discover the accurate answers of research question. In general the implementation government regulation no 22/2001 is creating new benefits to oil & gas business environment in indonesia, however it is not attractive enough brings indonesia to be the most competitive country compare to some countries among south east asia such as, thailand, malaysia. The new cost recovery no 79/2010 created negative impact to oil & gas business sector, the uncertainty is influenced investor entering new market or exploring new field, which required high capital injection and technology.
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