“Incentives are we fought through the PP No. 62 was not enough that it needs to be added other incentives to increase refinery investment in Indonesia,” said Minister of Energy and Mineral Resources Purnomo Yusgiantoro in the Department of Energy and Mineral Resources Building, Jakarta (31 / 8). On the occasion, Minister of Energy and Mineral Resources participate was accompanied by Head of Investment Coordinating Board (BKPM) Muhammad Lutfi, President Director of PT Pertamina Karen Agustiawan, Director General of Oil and Gas Evita H Legowo, and Head of BPMIGAS R. Priyono.
Meanwhile, BKPM head Muhammad Lutfi, the additional proposed new incentives such as exemption of income tax (PPh) to the company that built a new refinery in Indonesia. According to Muhammad Lutfi, these incentives should be given during the last 12 years the investors tend to be reluctant to invest in development projects in the country because of the difficulty of achieving economies of the project.
In addition, BKPM chief said, other incentives could be given tax exemption of value added (VAT) for imported crude oil raw materials that will be processed in the refinery. “It could later be offset by income tax of oil products obtained from the refinery, of course, we also must consider the economics and kompetivitas of products produced by refineries in Indonesia generated outside Indonesia,” said BKPM head Muhammad Lutfi.
