TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsGovt unveils measures to hasten oil refinery projects
Coordinating Economics Minister Darmin Nasution (left) talks to Cabinet Secretary Pramono Anung shortly before a press conference on an eighth economic policy package at the State Palace in Jakarta on Monday
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Coordinating Economics Minister Darmin Nasution (left) talks to Cabinet Secretary Pramono Anung shortly before a press conference on an eighth economic policy package at the State Palace in Jakarta on Monday. The package comprises three policies, namely the construction and development of oil refineries and incentives for national airlines and service companies, especially regarding the purchase of aircraft. (Photo: Wienda Parwitasari/thejakartapost.com) (left) talks to Cabinet Secretary Pramono Anung shortly before a press conference on an eighth economic policy package at the State Palace in Jakarta on Monday. The package comprises three policies, namely the construction and development of oil refineries and incentives for national airlines and service companies, especially regarding the purchase of aircraft. (Photo: Wienda Parwitasari/thejakartapost.com)
C
span class="caption">Coordinating Economics Minister Darmin Nasution (left) talks to Cabinet Secretary Pramono Anung shortly before a press conference on an eighth economic policy package at the State Palace in Jakarta on Monday. The package comprises three policies, namely the construction and development of oil refineries and incentives for national airlines and service companies, especially regarding the purchase of aircraft. (Photo: Wienda Parwitasari/thejakartapost.com)
The government has unveiled its eighth economic policy package, which aims to speed up oil refinery construction, standardize land-mapping and provide incentives for the aviation industry.
Coordinating Economic Affairs Minister Darmin Nasution said the government planned to expedite the construction of crude oil refineries in Bontang, East Kalimantan and Tuban, East Java, with fiscal incentives for refinery projects.
"Oil refinery construction will be accelerated. We will issue regulations on two types of constructions, assigning Pertamina or having private entities build [facilities]. A presidential regulation will be issued in early 2016," Darmin said on Monday as quoted by Tempo.co.
This policy was important, he said, since Indonesia's refineries had a total oil refining capacity of around 900,000 barrels per day, far below the demand in the country, which stood at 1.6 million barrels per day.
Meanwhile, to develop the aviation sector, the government has decided to cut to zero the import tariff on aircraft spare parts, thereby supporting local maintenance service providers.
"The airlines may acquire spare parts quickly," Darmin said.
Most aircraft spare parts are made abroad and currently subject to import duties (BMDTP) under Trade Ministry regulations.
Imports can take a long time, because they are dependent on a recommendation letter from the Trade Ministry. The import tariff on aircraft spare parts varied from 5 percent to 10 percent, and in some cases 15 percent, depending on the specific product.
The new package also introduces a so-called one map policy, with the aim to have a single nationally-accepted map of land allotment with a ratio of 1:50.000.
According to Darmin, this policy is urgently needed to prevent instances of overlapping land allotment, which often hold up business activity and hamper investment, since the ministries and local governments have different standards for land mapping.
Frequent agrarian conflicts related to land usage and ownership are the consequence and have become an obstacle for infrastructure development.
In implementing the package, the government will urge ministries, institutions and local administrations to create a standardized single map. A forthcoming presidential regulation is slated to implement the policy. (ags)
