Govt promises incentives for smelters outside Java
Thursday, June 14 2012 - 12:20 AM WIB
The government promised to award incentives for investors willing to develop smelters outside Java Island as it would promote equal economic development which is currently focused in Java, Industry Minister MS Hidayat has said.
He said that the incentives could be in form of tax allowance and reduction of import tariff.
"If the smelters are to built outside of Java, the developers should also develop supporting infrastructure. It will be pioneering industry (in the local). They could get tax allowance such as the reduction of income tax or import tariff,? he said.
He said that the government could also provide tax holiday in the form of the exemption of corporate tax for five to ten years.
The government is promoting the development of processing and smelting facilities to process huge mineral ores before being exported as efforts to increase added value of raw materials.
Hundreds of miners have submitted proposal to build smelter which seemed to ensure that government would allow them to export raw materials before the 2014.
Editing Adianto P. Simamora