JAKARTA (Yosefardi) – The government of Indonesia opts to provide incentives for smelter projects as the project costs of a billion dollars.

Vice minister of finance Bambang Brodjonegoro said his ministry is now preparing a regulation regarding the incentive for smelter project.

That incentive would be the adjustment of export duty. The bigger incentive should go to the smelter project with better progress of their establishments.

Other incentive could be a tax allowance.

The government of Indonesia demands the construction of smelters could be started this year and targeted to complete in 2017.

There are 4 companies committed to build the smelter in the country, located in Kalimantan and Sulawesi islands. One smelter could cost US$1 billion to US$1.2 billion.