Special KEK Discourse for Coal Gasification Projects

Deputy for Investment Promotion of the Ministry of Investment and Downstreaming/Investment Coordinating Board/Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM), Nurul Ichwan encouraged the establishment of a special economic zone (kawasan ekonomi khusus – “KEK”) for the coal gasification project. According to him, the establishment of a KEK for coal gasification can accelerate the project that has so far been hampered.

“We want to have coal gasification that we want to present in Indonesia. In my opinion, we should be able to build an industrial area that must be labeled a special economic zone,” he said.

According to Nurul, KEK can be applied to gasification activities located at the mine mouth. The inclusion of this project into a KEK can open up more incentive options to meet the economic aspects that are feasible from gasification products. Tax holiday incentives, according to him, are one of the efforts to reduce production prices if this project is included in the KEK.

“If there is an area to create added value from coal with its downstream industry, even if it is not included in the 18 pioneer industries there, a tax holiday can be given. That is an extraordinary incentive,” he added.