"I am really hoping that other European countries would participate and become our top investors," Indrawati remarked at the Indonesia Economic and Investment Outlook 2020 co-held by the Investment Coordinating Board (BKPM) and EuroCham Indonesia.
During the 2017-2019 period, some 67 companies from China, Hong Kong, Japan, Singapore, South Korea, the Netherlands, as well as Indonesia, were included in the tax holiday program, with investment value reaching Rp1,102 trillion (some US$80.6 billion) and employment reaching a workforce of as many as 54,086.
The realization of tax allowance for the same period witnessed the participation of some 151 companies, with investment plan valued at Rp138 trillion (some US$10 billion).
The tax holiday scheme is offered to companies that invest in pioneer industries, with reduction in the company income tax to 100 percent for a minimal investment value of Rp500 billion ($36.5 million), or 50 percent for a minimal investment of Rp100 billion ($7.3 million).
It is applied for five years to two decades in accordance with the investment value.
Moreover, the tax allowance scheme is offered to companies that invest in priority industries, which could have a maximum 30-percent tax cut.
Furthermore, some 1,100 European companies are currently recorded to be operating in Indonesia.
"This remains a small figure for Europe, as such a big continent, to be the largest economic partner for the Southeast Asian region. Thus, I hope EuroCham would bring more companies to this country," Indrawati, who served as World Bank's managing director and chief operating officer for 2010-2016, emphasized. Related news: Moody's affirms Indonesia's sovereign credit rating at stable outlook
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