JIIPE Industrial Estate Management Supports Tax Holiday Rules
By : Hariyanto And Aldi Firhand. A | Wednesday, April 25 2018 - 22:03 IWST
Minister of Industry Airlangga Hartarto and President Joko Widodo during the inauguration of JIIPE Industrial Estate in Gresik, East Java (Photo: Humas)
INDUSTRY.co.id - Jakarta - The industrial estate manager of Java Integrated Industrial and Port Estate (JIIPE) supports the new regulation on corporate tax exemption facility (PPh) or tax holiday.
"I think the steps taken by the government have been very supportive. 'Tax holiday' is to attract investment," said President Director of JIIPE Bambang Soetiono in Jakarta, Tuesday (24/4/2018).
Bambang said as President Jokowi's message when inaugurated JIIPE early last March, Indonesia has lagged far compared to other Southeast Asian countries like Vietnam in attracting foreign investment.
"Licensing indeed becomes one of the investment constraints to enter Indonesia," said Bambang.
Therefore, it is only natural that the Indonesian government continues to strive to attract more investments ranging from providing tax incentives, simplifying licensing to service improvements.
Previously, the new "tax holiday" facility provided a reduction in corporate income tax on income from core business activities by 100 percent of the amount owed to corporate taxpayers making new investments in the pioneer industry.
Director General of Taxes Ministry of Finance Robert Pakpahan said the new rules on the facility tax exemption (PPh) or tax holiday are only allowed for new investments.
The government through the Ministry of Finance has also expanded the scope of the pioneer industry provided with a corporate tax exemption facility or tax holiday to 17 industry sectors.
"It is expected that more qualified candidates, the better investment in Indonesia will be more interesting with this new rule," said Robert.