The plan is being processed by the Fiscal Policy Agency of the ministry, and realization of the plan would be in one or two months, Finance Minister Chatib Basri said.Jakarta (ANTARA News) - The finance ministry said it will offer incentives for export-oriented investment to prevent capital flights from Indonesia.
The plan is being processed by the Fiscal Policy Agency of the ministry, Finance Minister Chatib Basri said after the launch of "Corporate Roadmap & Corporate Governance Manual" by the Financial Service Authority (OJK) here on Tuesday.
"Realization of the plan would be in one or two months," Chatib said.
He said Indonesia has to anticipate potential trend of return of capital to the United States and the impact on the countrys capital account.
He said investors tend to see state assets from the policy of a country as intangible assets rather than from resources, market size being big or labor cost being cheap.
Late last month , Chatib said incentives offered for re-investment in Indonesia constituted a follow-up of policy of the government to anticipate global financial turbulence.
The government would provide incentives for investors through tax facility in the process of reinvestment, he said.
"The policy is expected to prevent repatriation of profit and encourage reinvestment," he said.
"The tax now is 20 percent but with the new policy the tax would be close to 0 percent," he added.
He said the policy of offering incentives for export oriented investment would strengthen rupiah. (*)
Editor: Heru Purwanto
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