Jakarta (ANTARA News) - The Indonesian government will offer more interesting tax incentives than other ASEAN countries, to lure more investment inflow, Finance Minister Sri Mulyani Indrawati stated.
"We have done a benchmarking and in terms of allowance and holiday, our offers will be much better than Thailand, Malaysia, Vietnam, and Philippines," she noted here on Tuesday.
The incentives are made to finalize all investments 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 globals confidence towards economic growth, emerging market, and conducive investments 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.
Indrawati 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 of period, which depends on its investments values. The bigger, the longer it will get a tax holiday," she noted.
Indonesia would also offer tax allowance for pioneers category in order to expand its business capacity. This category could also choose to receive tax holiday or tax allowance.
"For small-medium enterprises with under Rp4.8 billion (turnover), we will cut their income tax from 1 percent to 0.5 recent," said Indrawati.
The low income tax incentives would also be given to research and development investments in order to encourage product innovation.
Source: ANTARA News