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INDONESIA: Chandra Asri’s PBI given tax break for Indonesia’s 1st butadiene plant

Chandra Asri Petrochemical’s Petrokimia Butadiene Indonesia (PBI) subsidiary has been granted a tax holiday for up to 10 years for its investment in Indonesia’s first butadiene production facility.

Toyo Engineering earlier received a contract for construction of the $145-million project, which will be established in Cilegon, West Java, and have the capacity to produce 100,000 t/y of butadiene using technology licensed from BASF.

PBI received approval from Indonesia’s president for the tax break because butadiene is considered a “pioneer industry” in the country.

Haris Munandar, the Industry Ministry’s director for industry climate and quality policy research, explained that the project will absorb a large number of workers, make products to substitute imports and have a multiplier effect on the industry.

(Syed Rashid Ali, Karachi, Pakistan)
Source: Weekly "PetroChemical News", Durham, NC, USA; 7 Jan 2013

 


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