Ministry proposes Unilever to get tax holiday facility

Thu, 03/15/2012 - 08:39

The Ministry of Industry has given a recommendation for PT Unilever Indonesia to obtain a tax holiday facility for its new investment in an oleochemical project in the Sei Mangkei downstream palm oil industry zone in North Sumatra.

Benny Wahyudi, Director General for Agro Industries at the Ministry of Industry, said that the recommendation for the Rp 1.2 trillion project has been submitted to the Ministry of Finance for approval.

Benny said that the project deserves a tax holiday incentive.  “They (Unilever) invest in the Sei Mangkei priority area, where infrastructure facility is still lacking, so they deserve the tax holiday facility,” he said.

Benny expected that the tax holiday for the oleochemical project would lure more fresh investment into the Sei Mangkei downstream palm oil project.

The oleochemical project will produce downstream palm oil products such as fatty alcohol and surfactant with a production capacity of 165,000 tons per year.  The facility is expected to start running in the third quarter of 2012.  It would process CPO supplies by state-owned plantation firm PTPN III, which operates the Sei Mangkei industrial zone. (rei)

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