Insight
Three years of Gross Split in Indonesia – is this the end?
Report summary
Indonesia introduced Gross Split terms in 2017 to reduce bureaucracy and improve efficiency in the upstream industry. On the back of the government's decision in July to allow a choice between gross split and cost recovery, this report analyses how successful gross split terms were in achieving these goals. The majority of awards and commitments were attributed to contract extensions, with only 17% of commitment spend on new exploration licences. Vague criteria for the discretionary ministerial split and the regressive nature of the Gross Split terms have proven unpopular, particularly in the current low oil price environment. The need for further change has been recognised, with proposals on the table for several additional incentives. As global upstream investment shrinks in the face of the short-term and long-term challenges, what else can Indonesia do to boost its upstream outlook?
Table of contents
- Executive summary
Tables and charts
This report includes 1 images and tables including:
- Gross Split timeline
What's included
This report contains:
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