Govt rejects Krakatau Posco?s tax holiday request

By Donald Haromunthe

A tax holiday facility requested by PT Krakatau Posco Energy (KPE) for its 200 MW power plant has been rejected by the government, said Irvan Kamal Hakim, President Director of IDX-listed steel maker PT Krakatau Steel Tbk.

KPE is a joint venture between Krakatau Steel and South Korea?s Posco Group. Irvan told Petromindo.com on Wednesday that the company has managed to fulfill only two of the four requirements set by the government to be eligible to the tax holiday facility. He did not provide further details.

KPE has requested for the tax holiday since it claims as a pioneer in producing electricity from exhaust gas from the operation of the company?s cement plants, located in Cilegon, Banten, which started operation early this year.

Editing by Reiner Simanjuntak