Government promises incentives for coal gasification, liquefaction projects

By Adianto P. Simamora

Petromindo|Khalsa

The Investment Coordinating Board (BKPM) said that tax allowance would be provided to investors interested in developing coal gasification and coal liquefaction projects in Indonesia as part of efforts to utilize the country?s huge low rank coal reserves.

?We will provide tax allowance for investors developing coal gasification at mining locations with the aim to supply domestic market,? said Hanung Harimba Rachman, a Director at BKPM, said on Tuesday during a focus-group meeting, organized by the Indonesian Research and Development International (IRDI), which was attended by a number of Chinese investors.

He said that the tax allowance would also be awarded to investors developing coal utilization for liquefaction energy in key coal mining areas of South Kalimantan, East Kalimantan, North Kalimantan, Central Kalimantan, Jambi, Bengkulu, South Sumatra, West Sumatra, Riau and Aceh.

Editing by Reiner Simanjuntak