Govt suggested Cargill to seek for tax allowance facility

Wed, 02/29/2012 - 07:24
IN

The government has suggested PT Cargill Indonesia to seek for tax allowance facility in relation to in plan to invest in a new cocoa processing facility.

Director General of Agro Industry at the Ministry of Industry, Benny Wachyudi said that the Cargill investment plan does not meet the requirement for tax holiday, which is more appropriate given to high risk investment such as CPO downstream industry.

“I suggest Cargill to (seek) for tax allowance only,” Benny said. 

Cargill plans to invest US$110 million in a new cocoa process facility with a capacity of 60,000 tons per year in Indonesia.  But there is no fix schedule yet on when Cargill will realize the investment.

Meanwhile, Cargill Indonesia Corporate Affairs Director Rachmat Hidayat said that the company has yet to find suitable location for the cocoa processing facility.

He acknowledged the company has been seeking for a tax holiday facility from the government, but was surprised to learn of the criteria for the facility including an minimum investment requirement of Rp 1 trillion for the machinery alone.

Rachmat said that the largest expenses for investment in cocoa processing facility is on land acquisition not on machinery. (rei)   

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