Comparison of oil and gas fiscal policies in Southeast Asian Countries: Indonesia, Malaysia and Brunei Darussalam

Abstract

This study's objective was to examine the comparison of petroleum management policies in accordance with the concession contract system and production sharing contract system in several countries in the Southeast Asia region. In contrast to existing research, this comparison focuses more on the countries of Indonesia, Malaysia and Brunei Darussalam, which are developing countries producing petroleum in the Southeast Asia region. Moreover, this comparative research will be used to identify the kind of oil and gas contract that will yield the highest profits for Indonesia. Since Indonesia is a developing nation that is an archipelago, it depends heavily on its oil and gas resources for foreign exchange, necessitating the creation of suitable oil and gas management laws. Comparison of oil and gas policies undertaken through interviews with oil and gas law experts and a literature review of the history of the petroleum management policies in each country. The study's findings indicate that production sharing contracts are more profitable to implement in developing maritime countries such as Indonesia, Malaysia and Brunei Darussalam compared to the concession system. This is due to the implementation of a production sharing contract system in the state has a strong position towards contractors. Apart from that, the provisions in the Production Sharing Contract also require the use of domestic labor and goods. This will definitely increase the multiplier effect and technology transfer so that Indonesia is expected to be able to compete with other countries.