Unocal relocates operation from Batam to Singapore

Oil and gas company Unocal Indonesia Company said it would relocate its warehousing and supplying operation from the island of Batam to Loyang area in Singapore following the government's plan to impose value-added taxes on capital goods on the island, Bisnis Indonesia reported.

""Batam's warehouse and the supply base for Batam and its surrounding areas will be closed on April 1 and relocated to Singapore's Loyang. The closure is related to the government's program to impose value-added taxes on capital goods," Unocal's purchasing department official Edison A. Sambuaga said in the letter to all vendors.

Head of the Batam chapter of the Indonesian Chamber of Commerce and Industry (Kadin), which received the copy of the letter, Asman Abnur confirmed Unocal's relocation plan. (*)