A Literature Review of Cost Recovery Practices in Production Sharing Contracts (PSC) in Indonesia’s Oil and Gas Sector
DOI:
https://doi.org/10.29017/lpmgb.60.1.1963Keywords:
cost recovery, production sharing contract, oil and gasAbstract
This study examines cost recovery practices within the Production Sharing Contract (PSC) scheme and the issues arising from its implementation in Indonesia’s upstream oil and gas sector. The method used is a literature review of scientific articles, government regulations, and institutional reports. The results show that cost recovery plays an important role in encouraging investment by providing cost reimbursement certainty for contractors after commercial production is achieved. Recoverable costs include non-capital, capital, and depreciation costs in accordance with PSC provisions and Government Regulation No. 79 of 2010. However, its implementation faces several challenges, including cost overruns, moral hazard due to misaligned incentives, information asymmetry between contractors and the government, and administrative complexity in audit and verification processes. These findings indicate the need to strengthen governance, improve transparency, and align regulations to ensure the effectiveness of cost recovery and support the optimization of state revenue. This study contributes to the existing literature through an integrative multi-perspective synthesis that consolidates legal, fiscal, and governance dimensions which have previously been studied separately, offering a more comprehensive and structured analytical basis for future policy reform.
References
Audrey, P., Ikaningtyas, & Kurniaty, R. (2018). The Effect of Cost Recovery Mechanism in Production Sharing Contract (PSC) in Oil and Gas Industry in Indonesia. Advances in Economics, Business and Management Research, 59.
Handika, i. (2019). Influence Of PSC Changes in The Upstream Sector From Cost Recovery System Into Gross Split Towards The Obligation To Pay Land And Building Tax. Mimbar hukum, 31(1), 126–139.
Hasyim, A., & Irham, S. (2015). Analisa Perbandingan Kontrak Bagi Hasil PSC, PSC No Cost Recovery, Dan Sliding Scale PSC No Cost Recovery Pada Lapangan CBM “X” Dengan Optimasi Drilling Schedule. Seminar Nasional Cendekiawan.
Hutapea, H. D., Naila, A., Gabriellia, C., Harintan, N., & Tantya, P. (2023). Comparative Analysis Of Cost Recovery And Gross Split Mechanisms In Oil And Gas Projects In Indonesia. Problematika Hukum, 9(1), 24–32. https://doi.org/10.1093/jwelb/jwy001
Jumiati, W., & Sismartono, D. (2018). Tantangan Keekonomian Kontrak Bagi Hasil Gross Split Dan Cost Recovery. Studi Kasus Lapangan Gas Offshore Di Sumatera Bagian Utara. Lembar Publikasi Minyak Dan Gas Bumi, 52, 105–112. https://doi.org/10.29017/LPMGB.52.2.350
Kamil, R., Irham, S., Sunny, P., & Ristawati, A. (2019). Economic Analysis Of PSC Cost Recovery And Psc Revenue Over Cost For Long Term Exploration Block. International Journal Of Scientific & Technology Research, 8(11).
Kementerian ESDM. (2024, May 31). 20 Mei 2024, Realisasi PNBP Migas Capai Rp36,81 triliun. Kementerian Energi Dan Sumber Daya Mineral.
Kementerian ESDM. (2024, August 9). Masifkan Eksplorasi, 68 Cekungan Migas Simpan Potensi Besar. Kementerian Energi Dan Sumber Daya Mineral.
Maulani, M., Butt, O. J., Prima, A., Nugrahanti, A., Rosyidan, C., Samura, L., Satiyawira, B., Yanti, W., & Dahani, W. (2024). The PSC Cost Recovery Analysis Comparison between Adding Infill Wells and Workovers Scenarios of a Remote Oil Producing Field in Indonesia. Interdisciplinary Approaches to Sustainability, Innovations, Cultural Heritage, Technology, and Urban Development in Indonesia, 5.
Mohamed, I. S., Khattab, H. M., El-Sayed, S. K., El-kareem El-Noby, M. G., & El-Rammah, S. G. M. (2024). A new progressive and efficient production sharing Contract for upstream oil and gas industry. Geoenergy Science and Engineering, 235. https://doi.org/10.1016/j.geoen.2024.212733
Republik Indonesia. (2010). Peraturan Pemerintah Nomor 79 Tahun 2010 tentang Biaya Operasi yang Dapat Dikembalikan dan Perlakuan Pajak Penghasilan di Bidang Usaha Hulu Minyak dan Gas Bumi. Jakarta: Sekretariat Negara.
Republik Indonesia. (2001). Undang-Undang Nomor 22 Tahun 2001 tentang Minyak dan Gas Bumi. Jakarta: Sekretariat Negara.
Ryandhita, I., & Cahyono, A. B. (2024). Analisis Implementasi Hukum Perjanjian dalam Kontrak Bagi Analisis Implementasi Hukum Perjanjian dalam Kontrak Bagi Hasil (Production Sharing Contract) Gross Split pada Kegiatan Hasil (Production Sharing Contract) Gross Split pada Kegiatan Usaha Hulu Minyak dan Gas Bumi di Indonesia Usaha Hulu Minyak dan Gas Bumi di Indonesia. Lex Patrimonium, 3(1). https://scholarhub.ui.ac.id/lexpatrihttps://scholarhub.ui.ac.id/lexpatri/vol3/iss1/10
Sari, I., Adam, M., Isnurhadi, Wahyudi, T., & Widiyanti, M. (2021). Comparative analysis of upstream oil and gas contracts cost recovery scheme against gross split scheme (Case study: PT. Pertamina Hulu Energi Jambi Merang). International Journal of Business, Economics & Management, 4(2), 378–388. https://doi.org/10.31295/ijbem.v4n2.1710
Shobah, S., Widhiyanti, H. N., & Audrey, P. (2015). Cost Recovery Dalam Kontrak Kerjasama Minyak Dan Gas Bumi Di Indonesia Ditinjau Dari Hukum Kontrak Internasional. Brawijaya University.
Soesanto, E., Zaidaan, R., & Ahiraf, S. A. (2024). Peran Cost Recovery pada Sektor Minyak dan Gas Bumi dalam Mendorong Pembangunan Ekonomi Nasional. Globe: Publikasi Ilmu Teknik, Teknologi Kebumian, Ilmu Perkapalan, 2(4), 307–316. https://doi.org/10.61132/globe.v2i4.675
Sugiyono. (2023). Metode Penelitian Kuantitatif, Kualitatif, Dan R&D (Sutopo, Ed.; 2nd ed., Vol. 28). Alfabeta Bandung.
Tambunan, M. R. U. D., & Togatorop, G. (2021). Dualisme Ketentuan Cost Recovery Sebagai Dasar Pungutan Negara Pada Industri Hulu Migas. Veritas et Justitia, 7(1), 56–90. https://doi.org/10.25123/vej.v7i1.3740
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Copyright by Authors. Published by LEMIGAS
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
