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BKPM asks Finance Ministry to extend tax breaks for 18 industries
The current incentives are set to expire on Oct. 8, four years after the government first granted them through Finance Ministerial Regulation (PMK) No. 130/2020.
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Workers assemble electric motorbikes at the Alva Manufacturing Facility in Cikarang, West Java, in an undated handout photograph. (Alva Auto/-)
T
he Investment Ministry/Investment Coordinating Board (BKPM) has proposed extending the tax holiday and mini tax holiday for new and expanded investments across 18 industrial sectors, including mining, oil and gas, and manufacturing.
The current incentives are set to expire on Oct. 8, four years after the government first granted them through Finance Ministerial Regulation (PMK) No. 130/2020.
BKPM investment deregulation director Dendy Apriandi said the agency had submitted the proposal to the Finance Ministry on Thursday.
“We believe the incentives are crucial for supporting key industries,” he said on Thursday.
“For starters, we’ve proposed a two-year extension [for the incentives],” he noted.
Read also: Trade surplus hits 14-month low as imports surge, but that might be good news
To qualify for the incentives, companies need to commit at least Rp 100 billion (US$6.3 million) for new projects or expansions to acquire a 50-percent corporation tax cut.
