Incentives for Investment
Super Deduction Tax
Government Regulation No. 45/2019
Domestic taxpayers who open a new business or expand their existing businesses in labor intensive sectors could enjoy a net income tax deduction of 60% of the capital they invested as fixed assets
Vocational Training Program
Domestic taxpayers who conduct working program, interships and or educational activities to develop human resources based on certain competency could obtain a gross income tax deduction as high as 200 percent of the funds they had spend for the activities
Domestic taxpayers who conduct R&D in Indonesia could obtain a gross income tax deduction as high as 300 percent of the cost of their R&D activities
(MoF Regulation No.130/PMK.010/2020 )
Mini Tax Holiday
(MoF Regulation No.130/PMK.010/2020)
18 industries entitled to apply tax holiday in Indonesia
- Automotive industry and its main components including electric vehicle.
- Basic inorganic chemical industry.
- Digital economy data processing, hosting and its related activities.
- Economic infrastructure including a power plant, a toll road with low IRR, a seaport with low IRR, oil tanking, TOD.
- Industrial manufacturing of irradiated, electromedical or electrotherapy equipment.
- Industrial manufacturing of main components for electric power generation machinery.
- Machinery industry, the making of main engine or components for machine.
- Main components for electronic industry or telematics equipment, such as semiconductor wafers, lcd, etc.
- Main raw material for the pharmaceutical industry.
- Manufacture of the main component for aircraft and supporting activities for the aerospace industry.
- Manufacture of the main component for train.
- Oil & gas refining without or integrated with its derivatives industry.
- Organic based chemical industry sourced from agricultural, plantation or forestry products.
- Petrochemical industry from oil, gas, or coal, without or with derivative.
- Processing industries based on agriculture, plantation, or forestry products, with or without its derivatives.
- Robotic component industry for manufacturing machinery industry.
- Shipbuilding industry and manufacture of its main component.
- Upstream base metal industry / smelter (iron steel or others).
Government Regulation No. 78 / 2019
Ministry of Finance Regulation No. 96/2020
Update: The granting of Income Tax Facility is carried out by the Chairman of BKPM on behalf of the Minister of Finance.
Tax allowance offered for investment in 183 business activities
Import Duty Facility
MoF Regulation No.66/PMK.010/2015
Chairman of BKPM Regulation No. 16/2015
- Exemption of import duty on imported capital goods (machines) for 2 years during construction period.
- Exemption of import duty on imported goods and material for production for 2 years during initial production (or 4 years for companies using locally-produced machines min.30% from total value of machines for production).
- Equitable and Non discriminatory treatment against country of origin