Entrepreneurs and industry players are expected to improve their roles in preparing qualified and competitive human resources to meet the needs of workforces in business and industry sectors.
Jakarta (ANTARA) - The super tax deduction incentive is a part of the government’s efforts to build competent and top-notch manpower, according to an official from the Economic Affairs Ministry.

The government has issued regulation (PP) No. 45 Year 2019 that manages the allotment of a super tax deduction incentive of as much as 200 percent for entrepreneurs and industry players conducting vocational activities.

“Entrepreneurs and industry players are expected to improve their roles in preparing qualified and competitive human resources to meet the needs of workforces in business and industry sectors,” deputy assistant of manpower productivity at the Coordinating Ministry for Economic Affairs, Yulius, said here on Saturday.

Based on data from the Central Statistics Agency (BPS), the gap between human resources’ quality at educational institutions and the industry requirement is almost 50 percent, he noted.

This is why President Joko Widodo has made human resources development as one of the priority programs since the beginning, he pointed out.

The super tax deduction incentive will offer opportunities to the industry in terms of tax exemption from gross income reduction — up to a maximum of 200 percent — on spending on work practices, internships, or learning activities, Yulius said.

The tax exemption can be utilized to improve efficiency, productivity, profitability, and competitiveness, he added.

Meanwhile, for human resources, the policy can expand opportunities for the vocational education sector to cooperate with industries in conducting quality improvement programs, he added.

Vocational education institutes will have the opportunity to work with many partners in developing the curriculum, improving learning quality and quantity, as well as conducting work practices and internships, Yulius observed.

The allotment of super tax deduction may also help regional administrations in making a profit by developing original products or commodities. (INE)


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Translator: Juwita Trisna Rahayu, Astrid
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