Investor Presentaiton
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: Jan 1-July 25 2022
15 Taxpayers; 4 countries investors
Investment plan of IDR 107,9 trillion
Business locations in 6 provinces
•
• 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 and
compensation for losses of up
to 10 years.
• The criteria are having a high
investment value or for export,
a large absorption of labor; or
have a high local content.
• To encourage investment
labor-intensive
support
in
industries,
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
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
Source: Coordinating Ministry for Economic Affairs
Updated: Jan 1-July 25 2022
17 Agreement, 14 Taxpayers;
Investment plan of IDR 21,6 trillion
Updated: Jan 1-July 25 2022
➤ 2 Taxpayers; 2 Activities
Investment plan of IDR 365,3 billion
Updated: Jan 1-July 25 2022
138 Agreement (Vocational)
➤ R&D Est. Cost IDR 97,5 billion
13 Activities; 8 Taxpayers
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