Indonesia Considering Removing Taxes For Refinery Operations
JAKARTA -(Dow Jones)- Indonesia's finance ministry is considering proposals to remove the value-added tax on imported catalysts for refineries, tax on capital goods imports for refineries and providing loan guarantees to refinery developers, the Ministry of Energy and Mineral Resources said in a statement on its Web site Monday.
The proposals, if approved, are expected to encourage both local and foreign investors to build refineries in Indonesia.
State-owned PT Pertamina currently operates seven refineries across the country with a total daily output of 950,000 barrels.
Demand for petroleum products in the country, however, is around 1.020 million barrels a day. Pertamina meets the shortage by importing the products.
The ministry said the Finance Ministry in a meeting in May had rejected other proposals for providing tax incentives for 20 years and removing tax on dividends for refinery operators.
The proposals, if approved, are expected to encourage both local and foreign investors to build refineries in Indonesia.
State-owned PT Pertamina currently operates seven refineries across the country with a total daily output of 950,000 barrels.
Demand for petroleum products in the country, however, is around 1.020 million barrels a day. Pertamina meets the shortage by importing the products.
The ministry said the Finance Ministry in a meeting in May had rejected other proposals for providing tax incentives for 20 years and removing tax on dividends for refinery operators.