Sat, 16 May 2009
Jakarta (ANTARA News) - The government will discuss three incentive options in an effort to accelerate the development of fuel oil refinery plants, a downstream oil affairs official said.

Down Stream Oil Development Director Saryono Hadiwidjojo said in a press release here on Friday that the three options consisted of free import duties for capital goods, loan guarantee from the government and refinery product sales with a market price.

"We will discuss the three incentives options with the relevant agencies next week," Hadiwidjojo said.

He said that the three incentive options were results of discussion of seven incentive options proposed by investors previously.

"The other incentive options are difficult to realize in the near future," Hadiwidjojo said.

Among the difficult incentive options were the exemption of tax on dividends and tax incentives for 20 years. He said these options were difficult to realize in a short period because the law should be revised in the first place.

He said that the government actually had provided incentive for refinery plants through the finance minister`s decree No. 135 / 2000 and Government Regulation No. 62 / 2008 and non fiscal policies.

However, the incentives as stipulated in the decree were viewed by investors as not enough.

State-owned oil and gas firm Pertamina in cooperation with firms from Iran and Malaysia is planning the development of a refinery plant in Bojanegara, Banten.
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