Govt to provide tax break to oil refineries

Government will provide tax break to oil refineries to beef up competitiveness and to boost the country's fuel production, Head of the Capital Investment Coordinating Agency ( BKPM) Muhammad Lutfi said in Jakarta Wednesday

Lutfi told reporters after accompanying President Susilo Bambang Yudhoyono in welcoming the visiting Prime Minister of the State of the Kuwait Sheikh Nasser Al-Mohammed Al-Ahmed Al-Jaber Al- Sabah that Indonesia already had a legal ground for providing tax incentives for investors, that is the government regulation No. 1/2007.

"The tax allowance has already kicked off. (Investors) only need to apply," he said.

Lutfi said that so far the oil sector has not been included in the industry that has got the tax facility, but the government will make a policy within two months to include the sector in the list of industries entitled to tax facilities. 

Many oil investors had built refineries in Singapore which provided better incentives and oil price, said Lutfi.

With regards a plan by investors from Kuwait to build a refinery in Selayar, South Sulawesi, Indonesia would also give tax break for them, he said.(*)