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Pertamina to handle incentive-laden Bontang project
All ready: A man rides his bike past Pertamina's refinery in Cilacap, Central Java
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All ready: A man rides his bike past Pertamina's refinery in Cilacap, Central Java. (tempo.co) (tempo.co)
All ready: A man rides his bike past Pertamina's refinery in Cilacap, Central Java. (tempo.co)
The government has appointed state-owned energy giant Pertamina to take on the Bontang refinery project, promising cost-free land usage and land clearing as investment sweeteners.
Investors in the project, operating under a government and business entity cooperation (KPBU), would also enjoy a tax holiday of 10 years, extendable up to 15 years, said Energy and Natural Resources Minister Sudirman Said.A
'The cost will be zero as investors will use the land for free, thus significantly lowering their [spending],' he said, adding that the government through the Agrarian Ministry would guarantee land certification.
Appointed to run the project, Pertamina must create a partnership with a business entity, while the Finance Ministry appoint an international consulting firm.
"Five investors have expressed their interest in the refinery construction," he explained.
Amid the rapidly increasing domestic fuel demand, the Indonesia government has set the Bontang refinery project, and the Tuban refinery, as two main facilities to help meet local demand and reduce fuel imports.
Sudirman is aiming for investors to be appointed in October 2016, at the latest, and for the groundbreaking ceremony to be held in 2017. (ags)
