REPUBLIKA.CO.ID, JAKARTA - Indonesian government plans to halt negotiation with two Middle East investors on incentives of refinery constructions in Indonesia. The two foreign companies are Kuwait Petroleum Corporation from Kuwait and Saudi Aramco from Saudi Arabia.
"It is not yet re-negotiated" Minister of Finance, M Chatib Basri said on Thursday.
The incentive related to refinery construction must be given carefully as it is related to budget management.
"We have to asses the most feasible plan either refinery built by state budget or investor's budget," Basri said.
The former head of Investment Coordinating Board (BKPM) added that refinery development plan in Indonesia was often delayed caused by disagreement last year. The disagreement came not only from Ministry of Finance, but also from investors.
Incentive negotiation on refinery construction was halted when Agus Martowardojo was in charge as Minister of Finance. At that time, he argued that it was not elegant if investors who wanted to invest in Indonesia directly asked too many fiscal incentives.
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