Investor Presentaiton

Fiscal Incentives to Boost the Economy The government provides fiscal incentives to create a conducive investment climate, especially for industry players in order to boost investment and strengthen domestic industrial structure TAX HOLIDAY & MINI 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. There are 18 eligible pioneer industries that consist of 169 KBLI. Pioneer industries defined as are industries new possessing broad linkages, giving added value and high externality, introducing technology, as well as possessing strategic value for the national economy. Income tax reduction are 100% & 50% (mini tax holiday) during the next 2 (two) years subsequent to the end of the CIT reduction periods above, the taxpayers are eligible for half of the CIT reduction percentages • • 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 in labor-intensive • industries, supporting programs for job creation and absorption Indonesian workers. of net ⚫ Deduction from income, of 60% of the amount invested in tangible fixed assets, including land, that are used for the taxpayer's main business activities. The deduction is spread over six years (10% annually), starting from the fiscal year the commercial production commences • There are 45 labor- intensive industrial sectors and employ an average of 300 workers in 1 tax year. Super Deduction Vocational • Engaging in industry 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 Source: Coordinating Ministry for Economic Affairs 8

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