Because of disagreements about taxes
Indonesia stopped building refineries with Saudi Arabia and Kuwait
Official with the Indonesian State oil company Pertamina said his country has suspended talks to build two new refineries with KPC and Saudi Aramco due to differences over tax issues. '' Reuters quoted 'Krisna damayanto, Director of pertamina's refineries, we did not reach an agreement on taxation with Kuwait and failed negotiations, adding that negotiations with Saudi Aramco also failed after the Government rejected the Saudi demand for Indonesian tax reduction and tax exemption.
Pertamina signed two agreements were Olin with Saudi Aramco in February and with the Kuwait Petroleum Corporation in 2010 to build two refineries by 2018 with production capacity of 300,000 barrels per day. It was supposed to be building the refinery in balongan in West Java near the existing refinery at the Indonesian company. An Indonesian journalist said that Saudi Aramco called repeatedly for tax exemption of up to 30 years, plus incentives for a discount of up to 15 percent more than the offer price, '' Maine Platts in Singapore to supply oil. The two companies also called on Kuwait and Saudi Arabia for exemption from import duties, and at the same time the companies have opposed the assignment of other companies to supply oil refineries.