No abstract

No abstract

No abstract

No abstract

This paper aims to explain the normative rules relating to cost recovery as a basis for profit sharing between the government and the contractors in oil and gas agreements, and the implementation of those agreements. As the exploration and exploitation of oil and gas is a strategic industry for Indonesia, wherein oil and gas industry contributes 30% of the Indonesian state budget. In the management of national oil and gas industry, foreign investors are often involved with Production Sharing Contract. This Production S haring Contract between the government and investors usually done after cost recovery reduction was made. With a normative juridical and conceptual approach, show there is existence of inconsistency in the implementation of cost recovery in Production S haring Contract (PS C) of oil and gas procurement, particularly regarding the components that should exist in cost recovery contract of oil and gas cooperation in Indonesia. The amount of cost recovery value will greatly affect the amount for the production of oil and gas. Although it has been regulated in government regulation number 79 Year 2010 on operating cost of re-refundable and tax revenue in the field of oil and gas business, which states that there are 3 components of cost recovery: capital cost, non-capital cost, and depreciation, however there are still many disobediences to the implementation of cost recovery in the field