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Indonesia prepares tax incentives for manufacturers

Tempo - June 25, 2019

Hendartyo Hanggi, Jakarta – Industry Minister Airlangga Hartarto said the government will continue making policy breakthroughs to make domestic businesses more attractive and able to drive the economy. He said that one of the policies is to provide tax incentives to manufacturers.

The policy, Airlangga said, was presented by President Joko Widodo, or Jokowi, in a limited cabinet meeting sometime ago – particularly regarding facilities that support exports and investments.

"There is also the improvement of human resources quality through vocational and activating R&D activities to stimulate innovation," Airlangga said in a written statement on Monday, June 24.

The minister said that the plan has been materialized in a regulation draft that has been approved by all ministers. He hopes that the rule can be passed and implemented by July this year.

The tax incentives would also apply to companies that carry out export substitutions. The incentive given would likely be in the form of mini tax holidays and discounted import duty.

Airlangga hopes that with friendly taxes, Indonesian industries can attract more investments.

Source: https://en.tempo.co/read/1217939/indonesia-prepares-tax-incentives-for-manufacturers