Indonesia to grant special tax incentives for ‘pioneers’

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Indo industryIndonesia will offer “pioneering” businesses a tax holiday under a proposed plan to spur investment in under-developed industries, a senior official of the National Planning and Development Agency said on July 15 according to a report in the Jakarta Post.

Companies interested in investing in the nation’s metal, oil and gas and machine-building industries would receive a full or partial tax break under the agency’s proposal. The government would also float import duties on products that would increase productivity in labour-intensive industries, the agency’s head Armida Alisjahbana was quoted as saying.

“The tax holiday will be given by the government to pioneer industries, those which provide added value,” she said.

Companies would have to invest at least $100 million and deposit 10 per cent of the investment in domestic banks.

Indonesia is in need to attract more foreign direct investment, as the country faces difficulties with its economic performance due to high inflation, a rising unemployment rate, as well as poor infrastructure and poverty in remote regions.

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Reading Time: 1 minute

Indonesia will offer “pioneering” businesses a tax holiday under a proposed plan to spur investment in under-developed industries, a senior official of the National Planning and Development Agency said on July 15 according to a report in the Jakarta Post.

Reading Time: 1 minute

Indo industryIndonesia will offer “pioneering” businesses a tax holiday under a proposed plan to spur investment in under-developed industries, a senior official of the National Planning and Development Agency said on July 15 according to a report in the Jakarta Post.

Companies interested in investing in the nation’s metal, oil and gas and machine-building industries would receive a full or partial tax break under the agency’s proposal. The government would also float import duties on products that would increase productivity in labour-intensive industries, the agency’s head Armida Alisjahbana was quoted as saying.

“The tax holiday will be given by the government to pioneer industries, those which provide added value,” she said.

Companies would have to invest at least $100 million and deposit 10 per cent of the investment in domestic banks.

Indonesia is in need to attract more foreign direct investment, as the country faces difficulties with its economic performance due to high inflation, a rising unemployment rate, as well as poor infrastructure and poverty in remote regions.

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