Welcome Guest   |  Login   |   Signup
JG Logo
Thu, May 24, 2012
Archive Search

What’s a Foreign Oil, Gas Executive Worth? Well …
February 09, 2012

Share This Page
1
20
0
2
Share with google+ :


Post a comment
Please login to post comment

Comments

Jeanne Hachette
2:43pm Feb 10, 2012

SBD, you are right, Pertamina should be seriously investigated. They have stolen billions from the State and Indonesian people.I remember the first job I did in Indodnesia. The mud engineeer was explaining me that when working on a Pertamina rig , he has to pump up the volume of chemicals he used on his reports to allow the company man to resale them later. And this was going at a rig level. Imagine the business at the top. Why the KPK keeps quite on the wealth of all the directors , present and past?

Serigala-Berbulu-Domba
12:04pm Feb 10, 2012

I would think these compensation amounts would be chicken feed compared to what a couple of the former Pertamina President Directors managed to extract from the results of their efforts over the years.

  • Previous
  • 1
  • Next

Finance Minister Agus Martowardojo is capping the annual remuneration for foreign executives as part of the ministry’s oil and gas sector cost-recovery scheme based on their nationality, and amounts vary widely.

According to a copy of a Finance Ministry regulation acquired by Antara news agency on Thursday, the salary limitation officially has been in effect since Jan. 1, 2012.

Foreign companies are still allowed to pay their executives more than the limits specified in the regulation, but the government will not reimburse those payments under its cost-recovery scheme.

That scheme allows contractors to claim reimbursements from the government for upstream production costs if they produce oil or gas.

Maximum payment is based on the country of origin of the executives, according to their passports, as well as their positions in the companies.

For the most senior-level executives — president, country head and general manager — from Asia, Africa and the Middle East, the cap is set at $562,200 a year. For those from Europe, Australia and South America it is $1,054,150. The cap for top-level executives from North America is $1,546,100.

Meanwhile, for senior-level executives a step lower on the corporate ladder — senior vice president and vice president — from Asia, Africa and the Middle East, the cap is set at $449,700. For Europe, Australia and South America it is $843,200 and for North America $1,236,700.

Managerial-level employees — senior manager and manager — from the first category of nations can make a maximum of $359,700. For their counterparts from the second category it is $674,450 and for North America $989,200.

Previously, no such salary regulation was in place, which led to frequent disputes between the government and foreign companies over reimbursement.

Salaries, benefits and all other payments, including bonuses, are included in the calculation.

The regulation will be reviewed every two years.

As an exception to the regulation, if a foreign company can convince officials here and secure approval from the finance minister that it needs a specific rare expertise, then the government will approve the extra costs for reimbursement.

Antara