Indonesia provides tax incentives for investorsSouce:Xinhua Publish By Thomas Whittle Updated 27/11/2012 8:31 pm in World / 1 comment
JAKARTA, Nov. 27 — Indonesian Finance Ministry has issued a tax holiday for investors who have invested at least one trillion rupiah (some 103.97 million U.S. dollar) and put 10 percent of which at the country’s banking industry, an effort to lure more foreign investors, media quoting official reported here.
Arryanto Sagala, the head of the ministry’s center for industrial policy and quality studies said that the investors entitled to receive the incentives were those who are engaged in the base metal industry, oil refinery, machinery industry, renewable energy and communication equipment industry.
Sagala made it clear that the tax holiday would be given for five to 10 years after applicants have realized their entire investment plans and started commercial production.
In addition, the government will also provide 50 percent tax reduction for two years after the tax holiday period has expired, he said.
“Investors can apply for the facilities to the industry minister and the head of the Investment Coordinating Board (BKPM), ” sagala was quoted by Antara news wire as saying.
It takes 14 working days for the investors to apply for tax holiday, he pointed out.
The BKPM has projected investment to reach Rp283 trillion this year.
The agency has targeted 383 trillion rupiah investment this year and 500 trillion rupiah next year.