Regulation Update
Attention for Oil and Gas Joint Operation Contractor: Maximum remuneration for expatriates is applied

Friday, 21 September 2012

Attention for Oil and Gas Joint Operation Contractor:  Maximum remuneration for expatriates is applied

 The maximum remuneration amount for expatriates which can be recognized as expense by an Oil and Gas Joint Operation Contractor (hereinafter referred to as “the Contractor”) is stipulated in the Finance Minister No. 258/PMK.011/2011. The remuneration shall consist of salary, allowance, and other payment related with annual performance of the Contractor and shall not be given in a long term period.

 RATE FOR EXPATRIATES WITH PASSPORTS FROM THE FOLLOWING AREA

 

Category of Position  Asia, Africa and Middle East Area  Europe, Asia, Australia, and South America Area North America Area  Remarks  
 Highest Executive   562,200   1,054,150   1,546,100   Level-1 position in Cooperation Contract Contractor/KKKS (President, Country Head, General Manager)
 Executive   449,700   843,200  1,236,700   evel-2 position inKKKS (Senior Vice President, Vice President)
 Managerial   359,700   674,450   989,200 Level-3 position inKKKS                                (Senior Manager, Manager)
 Professional   287,700   539,450   791,200   Level-4 position inKKKS (Specialist)

 The remuneration limit is not valid for those having very specific and rare skills in the natural gas and oil sector. In other words, there is an exception of remuneration for such expatriates, where it can be recognized as expense by the Contractor without a limitation on the amount. The remuneration expensed shall be the actual amount paid to such expatriates.




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