Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia

Research Article

The Effect of Taxation Regime and Human Development Index on Upstream Oil and Gas Investment

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  • @INPROCEEDINGS{10.4108/eai.21-9-2023.2347044,
        author={Desi  Rahmawati and Rico  Ricardo and Feriansyah  Feriansyah and A. Rinto  Pudyantoro},
        title={The Effect of Taxation Regime and Human Development Index on Upstream Oil and Gas Investment},
        proceedings={Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICONIC-RS},
        year={2024},
        month={6},
        keywords={upstream oil and gas investment taxation regime human development index panel regression},
        doi={10.4108/eai.21-9-2023.2347044}
    }
    
  • Desi Rahmawati
    Rico Ricardo
    Feriansyah Feriansyah
    A. Rinto Pudyantoro
    Year: 2024
    The Effect of Taxation Regime and Human Development Index on Upstream Oil and Gas Investment
    ICONIC-RS
    EAI
    DOI: 10.4108/eai.21-9-2023.2347044
Desi Rahmawati1,*, Rico Ricardo1, Feriansyah Feriansyah1, A. Rinto Pudyantoro1
  • 1: Pertamina University
*Contact email: desirahmawatizamzukri@gmail.com

Abstract

This study aims to see the effect of the taxation regime and the human development index (HDI) on investment in the upstream oil and gas industry in eight oil and gas-producing countries for the period 2006-2018. The eight oil and gas-producing countries are the United States, United Kingdom, Canada, Norway, China, Indonesia, Peru, and Argentina. This study employs a quantitative method with panel data regression. The result shows that tax regime policy has a negative impact whereby a one per cent point increase in the tax rate will drive a decline in oil and gas upstream investment by 1.93 per cent. Meanwhile, the HDI has a positive significance on upstream oil and gas investment. An increase in the value of HDI by one per cent will increase the investment in the upstream oil and gas industry by 3.83 per cent.