Singapore-listed conglomerate Wilmar Group plans to invest over US$250 mln in a petrochemical refinery in Gresik, East Java. Arya Persada Indonesia, a subsidiary of Wilmar, is reported to have filed an application to access a government-incentive tax holiday for the planned investment. Wilmar will begin the construction on the new plant as soon as the government grants the tax holiday, and commence production by 2016.
Under the tax holiday arrangement, introduced in August last year, any company intending to invest at least Rp 1 trillion (US$104 mln) that deals in base metals, machinery or telecommunications equipment, or in pioneering industries such as oil refining, petrochemicals and renewable energy, would be eligible. The tax holiday — an exemption from income tax for a certain period of time — is available to local and foreign firms.