Ministry of Finance waiting for incentive proposal from MEMR

By Febry Silaban

Minister of Finance Bambang Brojonegoro said his office has yet until now to receive a proposal on incentives for the oil and gas industry from the Ministry of Energy and Mineral Resources (MEMR).

When asked by reporters whether his office will provide tax holiday to rejuvenate the ailing oil and gas upstream industry, Bambang quipped that until now, the ministry remains in the dark about the kinds of incentives needed by the industry.

?The MEMR must send a proposal on the type of incentives that are needed. The proposal must come from the ministry,? Bambang said on the sidelines of the Indonesian Petroleum Association (IPA) Convention & Exhibition.

The latest auction of oil and gas blocks announce in the third quarter of last year attracted few participants and the government declared there was no winner in the tender. The MEMR believed the government needs to provide incentives to raise the interest of investors amid the low oil price environment. Such incentives include tax holiday.

Editing by Johannes Simbolon