Government Incentives

(Taxes and policies)

Before the Omnibus Law was enforced in Indonesia, it was already regulated to provide incentives for investors in certain sectors which were regulated in various regulations. Currently, after the Omnibus Law is enacted, the investment regulations in Indonesia clearly state that there are several incentives that can be obtained by investors in investing in Indonesia, especially for business fields that are included in the “Priority Business Fields” category. The incentives provided are:

1. fiscal incentives
   • tax incentives:
     • tax allowance;
     • tax holidays;
     • investment allowance:
   • customs incentives
2. non-fiscal incentives:

• • ease of business licensing;
  • provision of supporting infrastructure;
  • guarantee of energy availability;
  • guarantee the availability of raw materials;
  • immigration;
  • employment; and
  • other facilities in accordance with the provisions of the legislation.

The technical implementation of the provision of each of these incentives is regulated later in the respective regulations of the respective government institutions concerned.

The Indonesian government provides consulting services for potential investors in Indonesia through the BKPM, so that foreign investors can take advantage of these services by contacting the BKPM directly or find out local consultant for your business interest.

Regards