Indonesia
INDONESIAN GOVT TO OFFER INCENTIVES FOR LABOR-INTENSIVE INVESTMENTS
Indonesia's Ministry of Investment and Downstreaming/BKPM has confirmed that labor absorption will become a key parameter in granting fiscal incentives to investors, shifting policy away from focusing solely on large capital values. Minister Rosan Roeslani emphasized that labor‑intensive sectors capable of creating significant employment opportunities are now a top priority. He cited a US$100 million coconut processing project in Morowali as an example: although modest in investment size compared to mineral downstream projects, it generates a high number of jobs and delivers strong socio‑economic benefits to local communities, making it eligible for incentives under the new approach. This policy shift is expected to improve Indonesia’s investment climate while directly addressing unemployment. BKPM data show that investment realization reached IDR498.8 trillion in the first half of 2026, equivalent to 24.4 percent of the annual target, and generated 706,569 jobs—an 18.9 percent year‑on‑year increase. Going forward, the government is open to offering fiscal incentives to projects with strong employment impact, reinforcing its commitment to inclusive growth and broader economic benefits beyond headline investment figures.Source: https://ekonomi.bisnis.com/read/20260423/9/1968790/pemerintah-siap-guyur-insentif-untuk-investasi-padat-karya (ICE GIACARTA)
Fonte notizia: Bisnis.com, 23 April 2026
