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Indonesia to offer tax incentives to manufacturing industry: Minister
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Industry Minister Airlangga Hartarto said similar schemes had been implemented successfully in Thailand. (Antara/Wahyu Putro)
T
he Industry Ministry will provide the manufacturing industry — a main contributor to gross domestic product (GDP) — with three tax incentives to try to boost the country’s economy, which has seen slow growth in recent years.
The government will offer a 200-percent tax allowance for the manufacturing industry, which wants to invest in vocation programs to improve training and skills for their workers.
“[For example], if a company invests Rp 500 million (US$37,023), the government will provide Rp 1 billion in tax allowance,” he said, as reported by kontan.co.id on Tuesday.
He added that such a scheme had been successfully implemented in Thailand.
The second incentive is for those who invest in innovative products, for which the government would offer 300 percent in tax incentives from the value of the investment, Airlangga added.
The third is incentives for labor-intensive industries that focus on exports, of which the incentive would depend on the number of workers employed in the industry, the minister said.
Airlangga said he had discussed the incentives with President Joko “Jokowi” Widodo and Finance Minister Sri Mulyani Indrawati.
He hoped the scheme will be ready by the end of 2017.
Sri Mulyani said she had not yet received the proposal, but she agreed that the government could give such incentives. “The President has talked about the importance of investment in vocation to improve the skills and training of workers,” she added. (bbn)
