"We have to work out the most aggressive incentive to attract investors, because competitors will do the same thing," Thomas stated, on the sidelines of Investment Award 2018 here, on Thursday.
The government, he continued, has prepared all necessary moves to anticipate the impact of trade war.
BKPM and the Industry Ministry have designed some special incentive for upstream to downstream industries, which have covered 40 percent of the national investment.
"All investors would need incentive, especially amid a trade war, as countries would compete to attract investors," he added.
According to Thomas, incentives have become the main instrument for developing countries to attract investment.
"In Asia, tax holiday is a sign of the government`s seriousness for investors and investment," he remarked.
Other key issues that would give positive sentiment for investors in Indonesia are strict regulation and smooth distribution of export and import.
"Production chain for all industries would not only cover the regional market but also the international market. The smoothness of customs services for export and import has become one consideration for investors," he added.
The government has identified the potential of each sector in all ministries to anticipate the impact of trade war. The ministries involve the Trade Ministry, Industry Ministry, Energy and Mineral Resource Ministry, and Finance Ministry.
Based on the identification result, the Finance Ministry would issue related policies, such as excise tax, for the import of raw material.
Reported by Ade Irma Junida
(S022/INE)
(T.SYS/A/KR-BSR/S012)
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
