PROFIT BEFORE TAX
Main Business Activities
- Upstream and Integrated Gas
- Trading and Supply
- Other support activities
Shell’s presence in Indonesia goes back more than 100 years to when the discovery of crude oil in Sumatra led to the formation of Royal Dutch Petroleum Company.
Shell has upstream and downstream activities in Indonesia. In Downstream, Shell’s activities include the marketing of fuels, lubricants and bitumen. In Upstream, Shell is a partner of Inpex, which operates the Masela production-sharing contract, including the Abadi gas fields. Shell has a 35% interest in the pre-development stage project.
Country Financial Analysis
The statutory corporate income tax rate in Indonesia is 25%.
In 2019, revenue and profit came mostly from the Downstream business. Upstream activities are in a pre-development stage and did not make a profit.
The accumulated earnings figure for 2019 was negative as a result of prior-year losses in the retail business when sales volumes fell because of the local government fuel subsidy policy.
Tax paid of $10.6 million represents a prepayment of corporate income tax for 2019. However, as the 2019 taxable income was fully offset with tax losses carried forward from previous years, there was no corporate income tax due for 2019. The $10.6 million prepayment of corporate income tax is refundable from the tax authority.