From GOI

Tax Breaks on Oil Equipment Extended


Indonesia has extended tax breaks on imports of equipment for oil exploration through to next year in a bid to boost investment in the energy sector, a Finance Department statement said.

Authorities abolished import tariffs on oil drilling equipment in 2005 after pleas from oil contractors operating in Indonesia.

A Reuters report on Tuesday (21/11/06) said the regulation covers drilling and production equipment, plant and machinery, transportation items, building tanks and shop equipment. It also covers electrical equipment, building materials, metals and hardware, tools, packing, paints and chemicals.

The regulation is valid for one year until July 15, 2007, and is retroactive to July 16, 2006.
The tax breaks apply to companies operating in Indonesia with working contracts with the country's oil and gas watchdog, BP Migas.

Indonesia's crude oil output fell 1% to 854,000 barrels per day (bpd) in October from 862,900 bpd in September due to shutdowns of several wells for maintenance, an official with an oil regulator said. The country's condensate output rose to 125,700 bpd in October from 116,000 bpd in September.
_________________________
Jawawa.net: Indonesian Business and Investment News Aggregator