Presidential regulation on refinery to be issued early 2016: Official

By Febry Silaban

President Joko Widodo is expected to issue a presidential regulation early next year to help accelerate the development of oil refinery projects in the country, according to an official at the Ministry of Energy and Mineral Resources.

"The presidential regulation is now in finalization stage. We hope that by the end of this month, the regulation can be signed by President (Joko Widodo)," Director General of Oil and Gas at the ministry IGN Wiratmaja said Wednesday.

Wiratmaja explained that the regulation would among others arrange various incentives including tax to help accelerate refinery projects, streamlining licensing procedure, and expedite land acquisition process.

He said that among of the fiscal incentives that are being discussed include tax holidays, tax allowance, exemption of import duties, as well as the exemption of Value Added Tax (VAT) for certain period.

Editing by Reiner Simanjuntak