Government promises incentives for private investors in refinery projects
Thursday, November 24 2016 - 03:13 AM WIB
The government will provide incentives for private investors planning to develop oil refineries in the country, Minister of Energy and Mineral Resources Ignasius Jonan said.
Jonan said on Wednesday that generally there will be three kinds of incentive. He said that private companies wishing to develop refineries will be directly given commercial permit from the ministry. They will also obtain permit to export the output. And finally, they will also be entitled to whatever facilities given by the government to state-owned oil and gas firm PT Pertamina in refinery projects.
He, however, said that the government will not provide fiscal incentives. ?We?ll provide incentives to the private companies. But there will no fiscal incentives,? Jonan told reporters.
The minister on November 10 signed new Ministerial Regulation No 35/2016 on the development of domestic refineries by private companies.
Jonan said in a statement issued by the ministry on Wednesday that the private investors can either source the required crude for the refinery at home or from import.
He said that the private investors will also be allowed to integrate the refinery project with petrochemical project. Export will be allowed after taking into consideration domestic needs, he added.
Edting by Reiner Simanjuntak