2 years import duty exemption; or directly apply for 4 years for companies using locally-produced machines (min. 30%).
For industries which produces goods and/or services, including:
1. Tourism and culture
2. Public transportation
3. Public health services
Imported machine, goods and raw material are:
30 % of investment value 145 business fields Eligible for tax allowance, expanded from 143 segments in the previous regulation with additional segment: textile industry. Under certain requirements among others: investment value or export orientation, manpower absorption, local content, and project location (especially outside Java island). Deduction of net corporate income which amount 30% from total investment, carried over 6 years period (equal to 5% deduction per year).
Tax Allowance Calculation Illustration: PT ABC
Total Investment: US$ 10,000,000
Deduction per year: 5% x US$ 10,000,000 = US$ 500,000
Deduction for 6 years: 6 x US$ 500,000 = US$ 3,000,000
5-20 years tax exemption, based on investment value and eligible for projects that considered strategic for Indonesian economy.
17 eligible pioneer industries:
|IDR 500 billion – less than IDR 1 trillion||5 years|
|IDR 1 trillion – less than IDR 5 trillion||7 years|
|IDR 5 trillion – less than IDR 15 trillion||10 years|
|IDR 15 trillion – less than IDR 30 trillion||15 years|
|IDR 30 trillion or more||20 years|
Investors in the selected industrial parks may directly start their project construction before obtaining construction permits. In parallel, investors submit Building Construction Permit (IMB), environmental permit, and other related permits, that should be completed before commercial production of the company.
Indonesia has applied Direct Construction Facility, called KLIK, in 47 selected industrial estates, as follow: