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Oil Refinery Accounting in Surabaya

KBLI 19200: Pengilangan Minyak Bumi

Oil refineries are multi-billion dollar complex assets with special accounting: multi-output process costing (joint products), crude and fuel product inventory valuation, and component depreciation. Arunika Consulting supports refining companies in preparing PSAK-compliant books.

Consult for Oil Refinery Accounting

Local Context for Oil Refinery Accounting in Surabaya

Local wage baseline

Rp 4.730.000

Operational-cost context for Oil Refinery Accounting businesses in Surabaya.

Tax office reference

KPP Madya Surabaya

Compliance context is tied to the local tax administration area.

City industries

Manufacturing & Pabrik, Export Import (Logistics), Trade Wholesale

Connects Oil Refinery Accounting with related local sectors.

Tax Risk Profile: High Risk

Intensive monitoring at KPP Surabaya

See Other Perspectives

This topic is also discussed from perpajakan & teknologi perspective.

Perpajakan View Teknologi View

Tax Challenges for Oil Refinery Accounting

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Joint Product Costing

One barrel of crude produces multiple products (gasoline, diesel, jet fuel, LPG) requiring fair joint cost allocation.

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Crude Inventory Volatility

ICP price fluctuations cause significant inventory value adjustments each period.

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Turnaround Maintenance

Major refinery shutdowns every 3-5 years costing $50-200M must be capitalized and amortized.

Arunika Solutions

Joint Product Process Costing

Joint cost allocation using sales value at split-off or physical units method.

  • Accurate per-product COGS
  • Clear margin visibility
  • Optimal production decisions

Inventory Valuation

Lower of cost or NRV valuation updated each period.

  • Fair inventory value
  • Timely write-downs

Turnaround Accounting

Capitalization as separate component amortized over interval to next turnaround.

  • No expense spike
  • Fair asset value

Related Regulations

PSAK 14

Inventories

Valuation of crude oil, intermediate, and finished product inventory

PSAK 16

Fixed Assets

Refinery accounting with component depreciation for furnaces, distillation columns, catalysts

PSAK 57

Provisions

Recognition of refinery decommissioning and environmental remediation obligations

Related Industries

Oil Mining Accounting Oil Refinery Tax Oil Refinery Technology

Nearby Areas for Oil Refinery Accounting

Balikpapan Bandung Banjarmasin Kabupaten Banyuwangi Batam Bekasi Bogor Kabupaten Bojonegoro

Frequently Asked Questions

Frequently Asked Questions

How is joint cost allocated in refineries?

Joint costs (crude + processing) are allocated using: (1) Sales value at split-off, (2) Physical units. Low-value by-products are recorded at NRV as a reduction of joint cost.

What is component depreciation for refineries?

Refinery components have different useful lives: furnace (15-20 yrs), distillation column (20-25 yrs), catalyst (2-5 yrs), heat exchanger (10-15 yrs). PSAK 16 recommends separate depreciation per significant component.

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