Indonesia: Government to offer incentives to SME investors excluded from tax holiday scheme

• Apr 23, 2018

The government is preparing a regulation on incentive packages for investors of small and medium enterprises (SMEs), as investments of this nature were not covered in the newly introduced policy on tax holidays.

Finance Ministry Regulation No. 35/2018 stipulates that investors must contribute a minimum of Rp 500 billion (US$ 35.98 million) to apply for a tax holiday, which means that those investing in SMEs do not qualify for incentives outlined in the policy.

“We are preparing tax and fiscal incentives for small and medium-sized investments,” Investment Coordinating Board (BKPM) head Thomas Lembong said in Jakarta on Monday.

He added that the government was still discussing the details of the regulation.

Thomas also emphasized the urgency of expanding the tax holiday scheme to include small and medium investors, but more talks were needed to discern which sectors would be included. (bbn)

Source: http://www.thejakartapost.com/news/2018/04/23/government-to-offer-incentives-to-sme-investors-excluded-from-tax-holiday-scheme.html