The Indonesian Investment Ministry/Investment Coordinating Board (BKPM) has proposed extending the tax holiday and mini tax holiday for new and expanded investments across 18 industrial sectors, including mining, oil and gas, and manufacturing. The current incentives are set to expire on Oct. 8, four years after the government first granted them through Finance Ministerial Regulation (PMK) No. 130/2020.To qualify for the incentives, companies need to commit at least Rp 100 billion (US$6.3 million) for new projects or expansions to acquire a 50-percent corporation tax cut. Investing more than Rp 500 billion would make companies eligible for a full corporation tax cut. The ministry said its proposed industries included upstream base metals, oil and gas refineries, oil and gas or coal-based organic basic chemicals, aerospace industry support and component manufacturing. The goal was to ensure GDP growth of 5.1 to 5.2 percent for the rest of the year. Investment, represented as gross fixed capital formation (PMTB), contributed over 27 percent to the country’s economic growth in the second quarter, just below consumer spending, which comprised over 54 percent of the GDP growth. The country’s investment inflows were up 22,3 percent year-on-year (yoy) to about US$ 52,8 billion in the first half of 2024, according to an Investment Ministry report in July. During the same period, foreign direct investment (FDI) amounted to about US$ 26,8 billion, up 16,1 percent from the previous year, while domestic investment reached about US$ 26 billion, showing 29,4 percent year-on-year growth.https://www.thejakartapost.com/business/2024/08/16/bkpm-asks-finance-ministry-to-extend-tax-breaks-for-18-industries.html (ICE GIACARTA)

Fonte notizia: The Jakarta Post, 16 August 2024