Government Measures to Mitigate Covid-19 Risk
Fiscal Incentives Policy to Boost the Economy
The government facilitates fiscal incentives to create a conducive investment climate, especially for industry players. Through increased
investment, it is hoped that it can strengthen the domestic industrial structure
TAX HOLIDAY
TAX
ALLOWANCE
INVESTMENT
ALLOWANCE
SUPER DEDUCTION
TAX
•
.
•
The criteria are new investment,
taxpayers including pioneer
industries, and income received
from the main business activities
carried out.
Pioneer industries are defined as
industries that have broad
linkages, provide added value and
high externalities, introduce new
technologies, and have strategic
value for the national economy.
There are 18 industrial sectors
that fall within the scope of
pioneer industries
Updated: 31 Dec 2020
82 Taxpayers; 14 countries investors
Investment plan of IDR 1,356 trillion
Realization of IDR 204 Trillion
Business locations in 24 provinces
Workforce of 112 thousand
Source: Coordinating Ministry for Economic Affairs
• Facilities in order to increase
direct investment activities for
certain business fields and / or
in certain areas.
•
The facilities include a
reduction in net income of 30%
of the total investment for six
years,
accelerated
depreciation and amortization,
imposition of income tax on
dividends paid to foreign tax
subjects of 10% or lower
based on a tax treaty, and
compensation for losses of up
to ten years.
The criteria are having a high
investment value or for export,
a large absorption of labor; or
have a high local content.
• Facilities in order to
encourage investment in
labor-intensive industries,
support programs for job
creation and absorption of
Indonesian workers.
• Incentives in the form of
facilities to reduce net
income by up to 60% for
labor-intensive sectors
• There
are 45 labor-
intensive industrial sectors
and employ an average of
.
300 workers in 1 tax year.
Super Deduction Vocational
•
Engaging industry in vocational
activities to provide knowledge
and encourage the transfer of
knowledge
• A maximum reduction of 200%
gross income from costs in the
context of providing work
practice, apprenticeship, and / or
learning activities
R & D Super Deduction
.
Increase the role of industry in
fostering innovation and the use
of the latest technology in the
production process
•
Maximum
gross
income
deduction of 300% over R&D
costs carried out in Indonesia
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