Red Carpet for Strategic Industries, Ministry Suggests
17 June 2014 02:04 WIB
TEMPO.CO, Jakarta - The Indonesian Ministry of Industry proposes exempting strategic industries from incentives regulations to attract investors. "We cannot attract them because the government limits incentives. We must not be afraid to give incentives beyond the existing provisions. If we are afraid, it would risk overdrawing the state budget," said Industry Minister Mohamad Suleman Hidayat at the Parliament Complex in Jakarta yesterday.
Hidayat names two industries he considers strategic, namely the cellular industry, and the refinery industry. According to the minister, the government should no longer hold open tenders for refinery constructions in Indonesia, as there are only four to five companies that are able to meet the government's requirement.
"[The government] requires importing crude oil for 30 years at an agreed price. The only people who can meet this requirement are the emirs of the Middle East," said Hidayat.
Haris Munandar, chief of the Center for Climate Assessment and Industrial Business at the Industry Ministry, said the government is composing a regulation—a derivative of Law No.3/2014 on Industries. The rule will govern the provision of incentives for industries categorized as strategic. The incentives can be fiscal or non-fiscal, or even monetary incentives.
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