Fall Of Kaesang's Jagoan Shares, PGN Is Hit By Tax Chaos

Illustration. (Photo: Unsplash)

JAKARTA - The shares of PT Perusahaan Gas Negara Tbk have closed down amidst the increase in the Jakarta Composite Index (IHSG) during early trading in 2021, Monday, January 4 yesterday.

The share price of the issuer coded as PGAS was closed lower at Rp1,540 per share. Based on RTI data, PGN's shares fell 115 points or fell 6.95 percent.

The decline in the share price of the champion of President Joko Widodo's (Jokowi) youngest son, Kaesang Pangarep, is approaching the lower auto reject threshold (ARB). Meanwhile, the total transacted PGAS shares reached 791 million shares with a transaction value of IDR 1.2 trillion.

The drop in PGN's shares yesterday was allegedly due to the issue of a tax dispute involving PGN. Previously, PGN had announced on December 30, 2020 that the company had the potential to pay principal liabilities of IDR 3.06 trillion.

Quoting Bisnis.com, this obligation arose after the Supreme Court granted a request for reconsideration (PK) from the Directorate General of Taxes (DJP). The dispute began in 2012 when there were different interpretations in understanding the tax provisions, namely PMK-252 / PMK.011 / 2012 regarding the implementation of the obligation to collect VAT on the delivery of natural gas.

In 2017, PGN filed an objection legal action. However, the DGT refused.

A year later, PGAS filed an appeal through the Tax Court and a year later the company's request was granted. The court canceled the DGT's decision on 49 SKPKB aka Underpayment Tax Assessment Letters. On the decision of the Tax Court, DGT submitted a PK to the Supreme Court.

PGAS stated that they are still trying to take legal measures that are still possible to mitigate the Supreme Court's decision. PGN is also currently evaluating and preparing legal actions that will be taken after receiving an official copy of the PK Decision in accordance with the procedures stipulated by the Law on the Supreme Court.

On the other hand, PGN will also submit an application to the DGT regarding tax collection to be carried out after the last legal remedy in accordance with the laws and regulations.

PGAS requests that payments be made in installments or other mechanisms so that the company can overcome financial problems so that it can continue to carry out business in the future, including carrying out Government assignments.

However, before the performance of its shares was exposed to negative sentiment due to the tax dispute, PGN was also under pressure by the still sluggish global natural gas price.

Based on Bloomberg data on Monday, January 4, the price of natural gas was at the level of US $ 2.62 per million British thermal units (MMbtu) in New York. This achievement rose 0.08 points or 3.15 percent from the previous day.

Despite the increase, natural gas prices actually did not perform as well as other energy commodities. The rebound in gas prices only started in June 2020, while other commodities such as oil began to rebound since April 2020.

The price of natural gas, which has never shown its best level, has made PGN unable to raise its performance. This is because the improving gas price is expected to be one of the triggers for PGN's positive performance.