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Jakarta Post

Minister wants to speed tax breaks to boost investment

  • The Jakarta Post

Jakarta   /   Wed, September 12 2012   /  10:28 am

Finance Minister Agus Martowardojo has promised he will accelerate the implementation of tax incentives to stimulate local investment.

Speaking to reporters on Tuesday, Agus said that the government had introduced several tax allowances and tax holidays to motivate local companies to invest in 122 strategic industrial sectors.

The minister hoped that the increase in investment would also help boost declining exports.

“We have to support whatever means are needed to increase our exports as well as to keep imports under control,” Agus said in Jakarta.

A government regulation promulgated this year that revises a 2008 regulation provides for tax allowances to promote investment.

The allowance reduces an investor’s annual net taxable income by 5 percent of the total value of their investment for a six year period.

The regulation also stipulates...