REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister for Economic Affairs Darmin Nasution said that the scope of the industrial sector receiving tax holiday would be expanded. He revealed that the government decided to review and increase the coverage of industrial sector.
"Scope of industrial sector receiving tax holiday facilities should be expanded as those industrial sectors are important to our country," he said here on Thursday.
Darmin said that there were several industrial sectors to be granted tax holiday facilities. However, the numbers of company in the industrial sector was small.
He also noticed that those who were willing to participate was also not significant. According to him, it was because the industries were mainstay to each country.
He explained tax holiday facilities to be given to iron, steel and its derivatives, pertrochemicals, and pharmaceuticals industries. The minister said it should be reviewed and some potential industrial sector should be added to the program.
The Indonesian government will offer more interesting tax incentives than other ASEAN countries, to lure more investment inflow, Finance Minister Sri Mulyani Indrawati earlier stated.
"We have done a bench marking and in terms of allowance and holiday, our offers will be much better than Thailand, Malaysia, Vietnam, and the Philippines," she noted here on Tuesday.
The incentives are made to finalize all investment`s regulation in Indonesia that had been ordered by President Joko Widodo (Jokowi).
The Finance Minister noted the incentive package will be announced by President Jokowi in April this year, in order to give global`s confidence towards economic growth, emerging market, and conducive investment`s climate in Indonesia.
"The government has undeniable commitment to reform investment policy. We will provide ease of doing business, simplification, service, and certainty," she said.
Sri Mulyani revealed that there would be some radical changes in the incentives` package on tax holiday and tax allowance. Indonesia will give a certainty of 100 percent tax holiday to replace existing 1 percent rate.
"Every qualified business that gets facility will be receiving a 100 percent tax holiday in a certain period, which depends on its investment`s values. The bigger, the longer it will get a tax holiday," she noted.
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