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View all search resultsThe global minimum tax aims to prevent a race to the bottom where countries outdo one another by lowering taxes for multinational companies, but it means Indonesia must rely on other incentives to lure investors. However, the effectiveness of the arrangement is in doubt after United States President Donald Trump declared it “has no force or effect” in the US.
The head of the metalworking and machinery association suggests gathering feedback from businesses on post-COVID market conditions to ensure that the incentives benefited the targeted industries as intended.
Following recent criticism, the government has argued in defense of its policy to boost investment in the nickel processing industry, saying it had paid off for the country with a significant rise in tax and export revenues.
The government issued a regulation late last year to make more investors eligible for tax holidays, but applicants are unable to avail themselves of the incentive as the online single submission (OSS) system is not ready to accommodate their request.
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