[Jakarta 10th Reuters]-Indonesian Nationion Coordinator (Economics) revealed on October 10 a policy to expand and simplify the preferential tax system in order to expand investment in special economic zones. Aiming to attract more than $ 50 billion over the next 10 years.
Indonesian authorities are worried that they will be left behind in the surrounding area due to the acquisition of investment from companies that move their supply chains from China in order to avoid the burden of tariffs caused by trade disputes between the US and China.
At the conference, Nastion Coordinator showed a policy to simplify preferential tax rules for investors considering the construction of facilities in special zones, and expressed his intention to create an attractive environment.
Under the new system, tax benefits are granted promptly based on the size of the investment.
As an example, an investment of more than 20 trillion rupiah ($ 1,410 million) will receive a 20 year corporate tax credit. When making similar investments outside the special zone, it is necessary to satisfy multiple requirements.
There are currently 13 special economic zones in Indonesia, but 7 special zones are planned to be established by the end of 2020.
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