Govt studies incentives for non-subsidized fuel retailers
Thursday, June 7 2007 - 01:42 AM WIB
The government is studying the possibility of providing fiscal incentives to non-subsidized fuel retailers in order to boost the development of non-subsidized fuel business.
The director of downstream business development at the Energy and Mineral Resources Ministry, Erie Soedarmo, said in Jakarta Wednesday that the possible incentives could be in the form of the exemption of fuel tax and property tax as well as import duty on equipment needed for the establishment of a fuel station.
He said that that the proposed incentives would be soon submitted to the minister of finance for approval.
According to him, by giving such fiscal incentives, the retailers would be able to cut down their operating costs. By doing so, the price of the non-subsidized fuels could be pressed down, and it would in turn encourage more people to buy non-subsidized fuel, he added.
The country's demand for subsidized and non-subsidized fuel reach about 64 million kiloliters a year.
The government scrapped Pertamina's exclusive right in the sale of non-subsidized fuel in the retail market in 2001. As many as 14 companies have so far secured licenses to sell non-subsidized fuels but so far only Shell Indonesia and Petronas have entered the business. (godang)