Jakarta (ANTARA News) - The ministry of industry is currently preparing an incentive scheme for the development of downstream industries for agricultural, oleo chemical and fishery sectors, MNS Hidayat said.

"The downstream sectors will be strengthened using incentives so that they will grow," he said at a national seminar and an exhibition of "Fee the World" suppliers here on Thursday.

He said the two incentives being prepared are recommendations for funding banks and tax allowance for investment in the downstream industries in the three sectors.

In addition to incentives, he would also prepare a policy to regulate supply of raw materials for products to be exported and domestic industries through a fiscal system.
He said one of the concepts being prepared is for palm oil downstream industries.

"Step by step, for example, in 2015 only 50 percent of production will be exported with an assumption that within five years the downstream industries will grow increasing the added value in Indonesia," he said.

Hidayat said his office is still discussing a policy for regulating CPO supply linked with the fiscal regulation for submission to the finance minister.

"The finance minister has agreed to make a new policy and to prioritize it," he said.
Hidayat has targeted exporting only 30 percent of CPO production in 2020 when it is expected to reach 43 million tons with rest rest going to domestic industries.(*)

Editor: Heru

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