the Government of Indonesia is currently drawing up a policy to provide incentives in the form of dividend tax relief to foreign investors who will reinvest their profits in the country.Kuala Lumpur (ANTARA News) - Foreign investors in Indonesia make huge profits from their investments in a number of business sectors including telecommunication, automotive, banking and cosmetic industries, a minister has stated.
"Many foreign investors earn huge profits from their investments in Indonesia," Indonesian Finance Minister Chatib Basri stated in a seminar themed "The Challenge from Quantitative Easing to Economic Management in Southeast Asia: Indonesias Experience", here on Monday.
During the seminar, the minister noted that high profit margins have motivated foreign investors to run their businesses in Indonesia.
Therefore, Chatib expressed his hope that the investors will not take all the profits back to their respective countries but, instead will reinvest in Indonesia.
According to him, the Government of Indonesia is currently drawing up a policy to provide incentives in the form of dividend tax relief to foreign investors who will reinvest their profits in the country.
"The Ministry of Finance is preparing the policy that is expected to be completed within the next two months," the minister asserted.
Further, Chatib added that the foreign investors who reinvest their profits in Indonesia will strengthen the rupiah exchange rate.
He pointed out that a number of Malaysian investors in Indonesia at present are investing in various sectors such as banking, telecommunication and palm oil industry.
(O001/INE)
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