Economists explain the participating interest scheme as an equity share, not an upfront payment to local governments
Indonesia clarifies 10% oil and gas stake is not direct cash to regions
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Summary
A 10% participating interest (PI) scheme in Indonesia's upstream oil and gas sector is often misunderstood as direct cash transfers to regional governments, according to economists. The PI mechanism grants local administrations a 10% stake in oil and gas blocks, entitling them to a share of profits rather than immediate revenue. Economists clarified that the scheme functions as an equity investment, with returns depending on project profitability and distributed after operational costs.
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Factual coreconfirmed by several independent voices
Economist Explains How the 10 Percent PI in Oil and Gas Works.
reliability low1/2 sourcesThe 10 percent participating interest (PI) scheme in the upstream oil and gas sector is still often misinterpreted as funds directly received by regional governments.
reliability low1/2 sources
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Economist Explains How the 10 Percent PI in Oil and Gas Works.
omitted byCentercovered byRight sideIn fact, PI 10
omitted byCentercovered byRight sideThe 10 percent participating interest (PI) scheme in the upstream oil and gas sector is still often misinterpreted as funds directly received by regional governments.
omitted byCentercovered byRight side
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