INDONESIA IMPOSES ZERO TAX ON IMPORTED GOODS FOR UPSTREAM OIL/GAS PROJECTS

Jakarta (ANTARA News) - The government has decided to impose zero tax on imported goods for upstream oil and gas projects in a bid to attract fresh investment into the sector, the Ministry of Finance said in a statement.

The move is retrospective from July 16 2006 and will be valid for one year until July 15, 2007.

The statement said the tax free facility is being given to companies that operate in cooperation with state-run oil and gas firm PT Pertamina and with upstream oil and gas regulator, BP Migas.



Lack of new investment into the oil industry has been cited as one of the reasons for a decline in the country's oil output. (*)