Natural Resource Taxation in the Asia-Pacific Region

Jakarta, Indonesia

August 11-13, 2015

The Ministry of Finance of the Republic of Indonesia and the IMF Fiscal Affairs Department hosted a three-day conference on Natural Resource Taxation in the Asia-Pacific Region, in Jakarta, Indonesia, from August 11 to 13, 2015.

This conference brought together senior government officials, international experts, IMF staff and participants from other technical assistance providers in the area. It had three main objectives: (i) to provide a forum for participating countries to exchange views and experiences on the challenges and macroeconomic considerations they face in evaluating and administering their extractive industries (EI) fiscal regimes (mining and petroleum); (ii) to have international experts discuss economic principles and other considerations for the design, implementation, and evaluation of EI fiscal regimes; and (iii) to provide an opportunity for finance, tax, and EI sector officials from the region to learn from their colleagues, and to hear more about the work of the IMF and other international institutions on the taxation of EI.

The conference was organized through the IMF Topical Trust Fund on Managing Natural Resource Wealth.

The conference was by invitation only.

Day 1, Tuesday, August 11, 2015

8:45 – 9:30 am

Registration
9:30 - 10:00 am

Opening Remarks


Mardiasmo, Vice Minister of Finance, Indonesia

Peter Mullins, International Monetary Fund

10:00 - 10:15 am

Photo Session
10:15 - 10:45 am

Session 1: General Discussion of the Topics to be Addressed During the Conference


Chair: Suahasil Nazara, Ministry of Finance, Indonesia

Presenter:

  • Fiscal Regimes for Extractive Industries—Design and Implementation
    Peter Mullins, International Monetary Fund
    Presentation
10:45 - 11:00 am

Coffee Break
11:00 am - 12:30 pm

Session 2: Design Principles and Practice of Fiscal Regimes for EI


Chair: IGN Wiratmaja Puja, Ministry of Energy and Mineral Resources, Indonesia

Presenters:

  • Fiscal Regimes for Petroleum
    Philip Daniel, Resource Governance Advisor
    Presentation

  • Fiscal Regimes for Mining
    Bryan Land, World Bank
    Presentation

Discussant: Pietro Guj, University of Western Australia
12:30 - 1:30 pm

Lunch Break
1:30 - 3:30 pm

Session 3: Fiscal Regimes for EI: Issues and Challenges in the Asia-Pacific Region


Chair: Ben Bingham, International Monetary Fund

Presenters:

  • The Experience of Indonesia
    Goro Ekanto, Ministry of Finance, Indonesia
    Presentation

  • The Experience of Mongolia and Myanmar
    Batbayar Enkhtaivan, Ministry of Finance, Mongolia
    Presentation

    Zaw Naing, Ministry of Finance, Myanmar
    Presentation

Panel Discussion: Experiences in the Asia-Pacific Region

  • Vann Puthipol, Ministry of Economy and Finance, Cambodia
  • Tran Thi Phuong Nhung, Ministry of Finance, Vietnam
  • Hongkham Phomvilath, Ministry of Finance, Lao PDR joined by presenters from Indonesia, Mongolia and Myanmar

3:30 - 3:45 pm

Coffee Break
3:45 - 5:15 pm

Session 4: Fiscal Regimes for EI: Lessons from Other Countries in Asia-Pacific Region


Chair: Batbayar Enkhtaivan, Ministry of Finance, Mongolia

Presenter:

  • The Experience of Australia, Malaysia and Thailand
    Pietro Guj, University of Western Australia
    Presentation
    Syakirah Md Nor, Ministry of Finance, Malaysia
    Presentation
    Chaiyasith Boonyanate, Ministry of Finance, Thailand
    Presentation
 5:15 - 6:30 pm

Session 5: Fiscal Regimes for EI: Issues and Challenges in the Asia-Pacific Region


Chair: Peter Mullins, International Monetary Fund

Presenter:

  • Experience of Papua New Guinea
    Kepsey Puiye, Department of Petroleum & Energy, Papua New Guinea
    Presentation

Panel Discussion: The experience of Pacific Island States

  • Fernanda Borges, Ministry of Finance, Timor-Leste
  • Scott Weers, Ministry of Finance, Palau
 6:30 - 8:00 pm

Informal reception (drinks and hors d’oeuvres)

Day 2, Wednesday, August 12, 2015

9:00 - 10:30 am

Session 6: Evaluation of Fiscal Regimes for EI


Chair: Peter Mullins, International Monetary Fund

Presenter:

  • Evaluating and Comparing Fiscal Regimes for EI (FARI model)
    Alpa Shah, International Monetary Fund
    Presentation

Discussant: Bryan Land, World Bank
10:30 - 10:45 am

Coffee Break
10:45 am - 12:15 pm

Session 8: Fiscal Transparency – Natural Resource Revenue


Chair: Wawan Juswanto, Ministry of Finance, Indonesia

Presenters:

  • Evaluating Fiscal Transparency of Natural Resource Revenues
    Alpa Shah, International Monetary Fund
    Presentation

  • Fiscal Transparency: Experience of Indonesia
    Andi Novianto, EITI Indonesia Secretariat
    Presentation

Discussant: Enkhbayar Nemekhbayar, Ministry of Mining, Mongolia
12:15 - 1:15 pm

Lunch Break
1:15 - 2:45 pm

Session 7: International Taxation - Issues for Extractive Industries


Chair: Philip Daniel, Resource Governance Advisor

Presenter:

  • International Taxation – Issues for Extractive Industries
    Peter Mullins, International Monetary Fund
    Andi Novianto, EITI Indonesia Secretariat
    Presentation

Panel Discussion: International Tax Issues

  • Gunawan Pribadi, Ministry of Finance, Indonesia
  • Scott Shelton, International Monetary Fund
  • Pietro Guj, University of Western Australia
2:45 - 3:00 pm

Coffee Break
3:00 - 4:30 pm

Session 9: Tax Administration and Interagency Coordination


Chair: Fernanda Borges, Ministry of Finance, Timor-Leste

Presenters:

  • Common Challenges in Implementing and Administering Fiscal Regimes for EI
    Scott Shelton, International Monetary Fund
    Presentation

  • Pricing and Valuation Policies for Fiscal and Royalty Purposes
    Pietro Guj, University of Western Australia
    Andi Novianto, EITI Indonesia Secretariat
    Presentation
 4:30 - 6:00 pm

Session 10: Administering Fiscal Regimes for EI: Issues and Challenges in the Asia-Pacific Region


Chair: Scott Shelton, International Monetary Fund

Presenters:

  • The Experience of Mongolia and Papua New Guinea
    Tugsjargal Sereenendorj, General Tax Authority, Mongolia
    Presentation
    Vaieke Vani, Department of Treasury, Papua New Guinea
    Presentation

  • The Experience of Malaysia and Indonesia
    Siti Aisah Abd Khalid, Inland Revenue Board, Malaysia
    Presentation
    Parulian Sihotang, SKK Migas, Indonesia
    Presentation
6:00 - 7:30 pm

Informal reception (drinks and hors d’oeuvres)

Day 3, Thursday, August 13, 2015

9:00 - 10:45 am

Session 11: National Resource Companies (NRCs), State Participation and Regulatory Agencies


Chair: Wawan Juswanto, Ministry of Finance, Indonesia

Presenters:

  • Defining (or separating) the Roles of NRCs and Regulators
    Bryan Land, World Bank
    Presentation

  • State Participation and Fiscal Treatment of NRCs
    Philip Daniel, Resource Governance Advisor
    Presentation
10:45 - 11:00 am

Coffee Break
11:00 am - 12:15 pm

Session 11 (continued): National Resource Companies (NRCs), State Participation and Regulatory Agencies


Chair: Bryan Land, World Bank

Panel Discussion: The experiences of NRCs in the Asia-Pacific Region

  • Arief Budiman, Pertamina
  • Thank Htay Aung, Myanmar Oil and Gas Enterprise
  • Roger Avinaga, PetroMin PNG

12:15 - 1:15 pm

Lunch
1:15 - 3:00 pm

Session 12: Concluding panel – What have we learned and the way forward


Chair: Peter Mullins, International Monetary Fund

Panelists: Government Officials from the Asia-Pacific Region

3:00 - 3:15 pm

Coffee Break
3:15 - 3:45 pm

Concluding Remarks


Speaker: Astera Primanto Bhakti, Assistant, Minister of Finance, Indonesia