The purposes of this research are to empirically analyse and examine the cost recovery impact on national budget (APBN) and state shared fund (DBH).The analysis of this research unit is on upstream of oil and gas industry which is managed by the Indonesian government with Production Sharing Contract for 44 companies. The population of this research comprises operators of Production Sharing Contract and the body of government that manages oil & gas or that is called “SKKMIGAS” consisting of 62 persons of manager level, 51 professionals, and 18 researchers from a university. The researcher also uses secondary data obtained from “SKKMIGAS” in 1984 to 2014 documents. The results of this research indicate the variable which has big impact on state shared fund is recovery cost, and the variable which does not have any impact on national budget is recovery cost.