TheJakartaPost
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Your letters: Offering tax incentives not enough
This refers to an article titled âTax breaks for labor-intensive industries,â (The Jakarta Post, March 3, p1)
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his refers to an article titled 'Tax breaks for labor-intensive industries,' (The Jakarta Post, March 3, p1).
To entice manufacturers to set up their production facilities in Indonesia, tax incentives are only one of many other needed reforms. Proper infrastructure support for supporting industries needs to be developed as any manufacturer of any product needs the supporting industries to be there, e.g. parts, maintenance, materials, etc.
The tedious bureaucratic process in obtaining the various permits plus the nightmarish import process at the ports are bigger deterrents. The government needs to create proper industrial parks with varying sizes of premises supported by reliable supply of electricity and water, waste disposal and even communal housing for the workers to make it feasible to grow the industrial base and increase employment.
Merely offering tax incentives do not make it feasible. The government must have an organized and strategic arrangement to create a sustainable industrial base including having onsite vocational schools to train the employees in industrial skills.
IB Saw
Jakarta
