Publications

Production sharing contract (PSC) is the most common type of fiscal system which is used in Indonesia. Unfortunately, in recent years, cost recovery becomes a critical problem to the PSC itself. One of the problems is the amount of cost recovery is too huge which does not accompanied by increasing of produced oil.This paper examines Royalty, Peruvian PSC, and PSC non-cost recovery economically compared to PSC Indonesia to be applied in Indonesia. It will be analyzed the appropriate methods to the certain condition running. Sensitivity analysis will be conducted to all the new methods offered, and also advantages and disadvantages of respective method. Eventually, there will be the best fiscal system of other fiscal systems offered. Sliding Scale PSC Non Cost Recovery will be examined after all to eliminate PSC Non Cost Recovery weakness. Hopefully, these numbers of petroleum fiscal system could solve the issue of the proper petroleum fiscal system, which should be applied in Indonesia.