Three industries proposed to get tax incentive

The Energy and Mineral Resources Ministry has proposed tax incentives be given to three industries in order to boost the domestic production of oil fuel and alternative fuel.

The incentives will be stipulated in the amendment to the Government Regulation No. 1/2007 on Tax Incentive for Particular Business and Particular Region, which is being formulated.

Speaking after attending a limited cabinet meeting at the Coordinating Minister for Economy Office in Jakarta Thursday, Energy and Mineral Resources Minister Purnomo Yusgiantoro said that three industries are those that convert coal into gas, investors who plan to build refineries and investors engaged in liquefied petroleum gas (LPG) business.

Incentives will be given to investors planning to build refineries anywhere in the country because "the existence of a refinery (anywhere in the country) will have an impact on the national economy," he said.

Minister of Finance Sri Mulyani suggested the three industries might get a total of 30 percent discount on income tax in compensation for their investment. They will get a 5 percent discount on income tax per year for six years.

She noted however that the amount of incentives and the number of industries entitled to get the incentives were likely to change as the government was still studying the amandement of the governmental regulation. (*)