Biang Keladi PGN Loses Rp3.8 Trillion: Tax Dispute Problem

Illustration. (Photo: Doc. Between)

JAKARTA - PT Perusahaan Gas Negara Tbk (PGN) posted a decrease in performance in 2020. This PGAS-coded red plate issuer posted a net loss attributable to owners of the parent entity of 264.77 million or Rp3.8 trillion, inversely proportional to the achievement in 2019 which posted a net profit of USD67.58 million.

The decrease in net profit was in line with the decrease in PGN's revenue. The company posted revenues worth 2.88 billion, down 25.02 percent from the realization of 2019 revenue of USD3.85 billion.

Finance Director of State Gas Company, Arie Nobelta Kaban explained about the decrease in PGN's performance. According to him, 2020 is a challenging year for PGN, due to the uncertainty of global and national conditions due to the COVID-19 pandemic which greatly impacts performance during 2020.

Regarding the financial performance in 2020 that suffered losses, he said, mainly due to external factors, such as tax disputes regarding VAT in the period 2012 - 2013.

This dispute was filed by the Directorate General of Taxation (DJP) through judicial review efforts (PK) and there has been a supreme court ruling in December 2020 of USD278.4 million. In addition, there was also a decrease in assets in the oil and gas sector of USD78.9 million.

"Without both factors beyond management's control, PGAS's financial performance still recorded a net profit of USD92.5 million. The profit is still higher than the net profit distributed to the parent entity of USD67.5 million in 2019," Ari said in a statement, quoted Monday, April 11.

In connection with the assignment of the implementation of the policy price of 6 US dollars per million british thermal units (MMBTU) through Kepmen 89.K/2020 and Kepmen 91.K/2020, the government has agreed to provide incentives to PGN as stated in Permen 8/2020 and Permen 10/2020. The form of incentives that will be given to PGAS is still under discussion with the government.

While related to the impairment of oil and gas assets, PGN management will optimize assets in order to support business sustainability and security of supply.

To maintain the sustainability of the company's business, PGN has pursued several strategies in the future, including the integration of upstream-downstream pipeline infrastructure as well as pgn and pertagas gas pipelines. In addition, PGN also transformed the business and restructured its subsidiaries and completed the construction of the Rokan Pipeline network.