CPC Corp. of Taiwan and Indonesia's PT Pertamina has signed a memorandum of understanding (MoU) to set up a new naphtha cracker in Indonesia. The project, expected to cost USD 6.47-billion, would involve the production of almost 1-mta of ethylene. In addition, the government is offering an incentive package for petrochemical projects, which waives all corporate income taxes for the first 20 years and then provides a 50% tax cut for the following two years. The partners would each have a 45% interest in the plant, with the remaining 10% to be held by Taiwanese and foreign petrochemical investors.