Indonesia is responding to the global minimum tax (GMT) by developing non-fiscal incentives to maintain its appeal to foreign investors. The GMT, set at 15% for multinational corporations with global revenues exceeding €750 million, limits Indonesia’s ability to offer tax breaks, given its 22% corporate tax rate. Finance Ministry official Febrio Kacaribu acknowledged that the GMT has triggered a global competition for alternative incentives, prompting Indonesia to explore options beyond tax holidays, such as improving the investment climate and streamlining business processes. To that end, Indonesia is introducing reforms like automatic permit issuance through service-level agreements starting October 5, and easing local content requirements by allowing R&D contributions to count toward compliance. In response to GMT, the government is also preparing three new incentives: cash subsidies for strategic sectors, refundable tax credits, and nonrefundable tax credits. Despite an 8.7% year-on-year drop in corporate tax revenue, Indonesia attracted nearly US$30.8 billion in foreign investment in the first half of 2025, underscoring its continued economic dynamism.Source: https://jakartaglobe.id/business/indonesia-preps-incentives-to-lessen-global-minimum-tax-impact-on-investors  (ICE GIACARTA)

Fonte notizia: Jakarta Globe, 23 September 2025