Letter: Tax holiday
| Wed, 01/26/2011 10:42 AM
This is a comment on an article titled “Is the tax holiday program sexy
enough to attract investment?” (The Jakarta Post, Jan. 24, p. 6).
Whenever Indonesia studies ways to increase its attractiveness to
foreigners, (be they tourists or investors), the first rule of business
marketing to be kept in mind is: “My best customer is the one that I
already have.”
Before looking for gimmicky easy answers to the problem of increasing
business, the first step to be taken by Indonesia’s civil administrators
is to look at the existing product from the viewpoint of existing
customers.
Such an examination quickly reveals that too many foreigners buy the
product once and don’t come back. There are things wrong with the
product and Indonesia’s ministers don’t show that they aware of what
these things are.
In other words, if your product is so attractive that your existing
customers keep coming back, they bring their friends and then you don’t
have to worry so much about sales and marketing gimmicks, such as tax
breaks.
Evan Jones
Batam, Riau Islands