The Jakarta Post
The government plans to announce a revision to its tax holiday policy next week that will expand eligibility for the fiscal incentive.
The revised regulation will include industries with investment value of less than Rp 100 billion.
“With the expanded policy, we’ll integrate incentives for all pioneer industries,” said the Office of the Coordinating Economic Minister’s macroeconomic and finance coordination undersecretary, Iskandar Simorangkir, in Jakarta on Thursday.
The incentive is in the form of a 50 percent income tax cut for at least five years. The mini tax holiday is also open to those who invest in 169 business units listed under the Indonesian Standard of Industrial Classification (KBLI).
He said the expanded tax holiday would also be accompanied by improvements in the online single submission (OSS) system.
“With the OSS system businesspeople who get a 100 percent tax holiday will be informed soon after their document is approved,” Iskandar added as quoted by kontan.co.id.
He said since the regulation had taken effect in April, total new investment had reached Rp 164 trillion, with the biggest investment value of light and stainless steel manufacturing reaching Rp 34 trillion.
“With the current performance, we are optimistic that all 169 goods listed on the KBLI will get produced in Indonesia. Their products could replace 46 percent of current imports,” he added. (bbn)