Government considers extra incentive for refinery investment

The government is considering to provide additional fiscal incentive for investors in petrochemical and oil refineries in the form of import duty and tax exemption in the import of catalyst and spare parts, Bisnis Indonesia said on Thursday.

Minister of Industry MS Hidayat said that although the government has provided tax holiday facility for investment in the refinery industry, and the existing ruling stipulates that investors which have already received tax holiday facility can no longer get tax allowance facility, the government will consider the possibility of extra incentive for investment in refineries.

He said that investment in refineries is capital intensive and provides thin margins, but has huge multiplier effect to the downstream sector. (*)