Oil refinery industry gets tax holiday

Oil refinery industry or oil and gas-sourced organic basic chemicals will receive tax holiday incentive from the government.

Finance Minister Agus Martowardojo told a media conference other recipients of the facility included basic metal, machinery, renewable resources and telecommunication devices industries.

The incentive is in the form of exemption of corporate revenue tax for five years since commercial operation. It is granted to applying investors who place at least Rp 1 trillion and invest in pioneer field. The incentive adopts retroactivity principle as it also goes to investors who have operated since 2010.

Head of the Investment Coordinating Board (BKPM) Gita Wirjawan said five companies had applied for the tax facilities like tax allowance or tax holiday. They are Caterpillar, which has US$500 million in investment, Posco whose investment is valued at $6 billion, Kuwait Petroleum Corporation (KPC) with investment of 6-7 billion, PT Indorama Sintetic Tbk which has $300 -500 million in investment and Hancook whose investment reaches $353 million. (romel)