Overview

Oil  and Gas business in  Indonesia  are managed  by  the Government of the Republic of  Indonesia, under Law No. 22/2001. This is in  accordance  with our basic constitution  Law 1945, mentioning  that  the ownership of all pro-  perty  underneath  the  earth in  Indonesia is the Government of the Republic of  Indonesia and would  be managed properly for the benefits of  the people of  the Republic of Indonesia.

In this particular context,  Government developed  a  Board  of  management named BPMIGAS ( Badan Pelaksana Kegiatan Hulu Minyak dan Gas Bumi) to represent the Government in  controlling all the business activity of petroleum industries. BPMIGAS has  an obligation to continually provide financial report to  the Government, regarding all activities including work program & budget, actual financial report, which then be used by Government for the purpose of macro economics consideration.

Control  system  performed  by  BPMIGAS  is done  through a standardized financial procedures manual  named “ Financial Budget & Reporting procedures manual”  applied to all  the  PSC (Production  Sharing  Contractors) in Indonesia, respectively.

The intension of  these workshop program is to gain understanding of the  important  reporting  and  budgeting  system mostly regarding  the Work Program and Budget, Authorization Financial Expenditures, Financial Quarterly  Report, and  Project Development as part of  the  Government auditing system.

These topics  are mostly  needs by  all  personnel  within the  PSC,  JOB and  Pertamina, all  levels of staff,  managers and executives. Because it relates to their daily  activities  in  preparing yearly budget and report, project management and preparing  AFE  proposals and closed  out report. This topic is also needs by participant for a promotion, upgrading or as a refreshing within the Departments. Everybody  in the company  needs to learn  these  materials, so that they  will  understand  the  cash flow of money invested in the company, and  the financial reporting  to  the Government of the Republic of Indonesia respectively.

Program Topics

Introduction on the Philosophy of Oil & Gas Reporting and Budgeting.

To discuss  the  basic  philosophy of   Law  No.22/2001  with  regards  to the Government policy to develop BPMIGAS as one Board representing the Government to manage all the PSC  Oil & Gas companies in Indonesia.

Financial aspect of Oil & Gas Reporting and Budgeting.

To discuss the potential auditing control system mention in the PSC “exhibit C”, regarding the calculation of Government Tax, Indonesia Share, Cost Recovery, Gross Revenue,Capital & Non Capital cost, Exploration & Development cost,  Production cost,  General & Administration  cost,  First  Tranche Petroleum,  Investment  Credit,   DMO,  Depreciation,  Lifting / Production, Entitlement,  Cash   Flow  Analysis,  Field   Development  Economic,  Cash settlement, Contractor Share and Questionnaires.

Course Leaders

E.R. Suwatidjah