Govt provides tax holiday to attract more investors

Jakarta (ANTARA News) - In yet another effort to attract investment in the industrial sector the Finance Ministry has issued a regulation on tax holiday, an Industry Ministry official said.

Under the regulation, tax holiday will be granted to investors who invest at least Rp1 trillion in Indonesia and put at least 10 percent of the overall planned investment in the national banking industry, the head of the ministry`s center for industrial policy and quality studies, Arryanto Sagala said here on Monday.

The investors that are entitled to receive tax holiday are those engaged in the base metal industry, oil refinery, machinery industry, renewable energy and communication equipment industry, he said.

He made it clear that the tax holiday will be given for five to 10 years after applicants have realized their entire investment plans and started commercial production.

In addition, the government will also provide 50 percent tax reduction for two years after the tax holiday period has expired, he said.

"Investors can apply for the facilities to the industry minister and the head of the Investment Coordinating Board (BKPM)," he said.

It takes 14 working days for the investors to apply for tax holiday, he pointed out.

The BKPM has set itself the target of attracting Rp383 trillion investment in 2013 and Rp500 trillion investment in 2014.

The agency has projected investment to reach Rp283 trillion at the end of this year, up by 15 percent from last year`s. (*)