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Jakarta Post

Kadin welcomes govt move to reduce income tax for SMEs

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, March 9, 2018   /   03:21 pm
Kadin welcomes govt move to reduce income tax for SMEs Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan P. Roeslani (JP/Anton Hermansyah)

The Indonesian Chamber of Commerce and Industry (Kadin) has lauded President Joko “Jokowi” Widodo’s move to reduce the annual income tax rate for small and medium enterprises (SMEs) from 1 percent to 0.5 percent.

The decision, which was made during a Cabinet meeting on Thursday, had been a direct response to Kadin’s proposal, according to Kadin chairman Rosan Perkasa Roeslani.

“This is very positive. We welcome to government’s response to our proposal, which we had made on a number of occasions,” Rosan said during Food Security Summit 4 as reported by

He said the tax cut would boost the growth of SMEs.

During the Cabinet meeting, President Jokowi initially proposed a 0.25 percent tax rate for SMEs, but Finance Minister Sri Mulyani Indrawati argued that the figure was too low.

Under Government Regulation (PP) No. 46/2013, SMEs with a turnover threshold of Rp. 4.8 billion (US$348,480) annually were required to pay 1 percent income tax.

Directorate General of Taxation spokesman Hestu Yoga Saksama said the government would immediately revise related regulations following Jokowi’s decision. (bbn)