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

4. Mining

5. Construction

6. Telecommunication

7. Port

Requirements:

Imported machine, goods and raw material are:

  • Not yet being locally produced.
  • If the local machines are available, yet unable to fulfill criteria of required machines.
  • If the local machines are available, yet unable to fulfill the total required machines.

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:

  1. Upstream basic metal industry;
  2. Industry of petroleum purification and/or refinement;
  3. Petrochemical industry;
  4. Non-organic basic chemical industry;
  5. Organic basic chemical industry;
  6. Raw material industry for pharmaceuticals;
  7. Semi-conductor industry and other computer main components;
  8. Industry of main components for communication devices;
  9. Industry of main components for medical devices;
  10. Industry of main components for industrial machinery;
  11. Industry of main components for machines;
  12. Robotic component industry;
  13. Vessel main component industry;
  14. Industry of main components for aeroplane;
  15. Industry of main components for railway;
  16. Power plant machine industry;
  17. Infrastructure for economy.

Investment Value
Tax Holiday Period
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

    Direct Construction Investment Service or “Kemudahan Langsung Investasi Konstruksi (KLIK)” is the second reform package launched by BKPM since the President Jokowi’s governance. This facility is currently available in selected 47 industrial parks in Indonesia.

    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.

    Requirements:

  • No minimum investments or workers is required.
  • Available for selected industrial parks.
  • Construction permits can be obtained in parallel with the construction process.

    Indonesia has applied Direct Construction Facility, called KLIK, in 47 selected industrial estates, as follow:

  1. Kendal Industrial Park
  2. Bukit Semarang Baru Industrial Park (BSB)
  3. Wijaya Kusuma Industrial Park
  4. Java Integrated Industrial and Port Estate (JIIPE)
  5. Bantaeng Industrial Park (KIBA)
  6. Wilmar Integrated Industrial Estate (KITW)
  7. Modern Cikande Industrial Estate (MCIE)
  8. Krakatau Industrial Estate Cilegon (KIEC)
  9. Bekasi Fajar Industrial Estate (BFIE)
  10. Delta Silicon 8 Industrial Park
  11. Karawang International Industrial City (KIIC)
  12. Suryacipta City of Industry (SCI)
  13. GT Tech Park
  14. Medan Industrial Park (KIM)
  15. Artha Industrial Hill
  16. Greenland International Industrial Center (GIIC)
  17. Jababeka Industrial Estate Phase III
  18. Kota Bukit Indah Industrial City
  19. Indotaisei Kota Bukit Indah Industrial City
  20. Jatengland Industrial Park Sayung (JIPS)
  21. Maspion Industrial Estate
  22. Tuban Industrial Estate
  23. Batamindo Industrial Park
  24. Bintang Industrial Park II
  25. Kabil Integrated Industrial Estate
  26. West Point Maritime Industrial Park
  27. Dumai Industrial Park
  28. Kariangau Industrial Estate
  29. Kawasan Berikat Nusantara (KBN)
  30. Jakarta Industrial Estate (JIEP)
  31. Marunda Center International Warehouse and Industrial Estate
  32. Bintan Inti Industrial Estate Lobam
  33. Millenium Industrial Estate
  34. East Jakarta Industrial Park (EJIP)
  35. Bekasi International Industrial Estate
  36. MM 2100 Industrial Town
  37. Kawasan Industri Terpadu Indonesia China (KITIC)
  38. Kujang Cikampek Industrial Estate
  39. Lion Industrial Park
  40. Cibinong Center Industrial Estate
  41. Rancaekek Industrial Estate
  42. Tanjung Emas Export Processing Zone (TEPZ)
  43. Safe N Lock Warehouse and Industrial Complex
  44. Tanjung Buton Industrial Park
  45. Padang Industrial Park
  46. Makassar Industrial Estate (KIMA)
  47. Piyungan Industrial Estate