Government Expands Tax Holiday


The government is revising a regulation on tax holiday to increase the number of beneficiaries that are eligible for the fiscal incentives.

Under Finance Ministry Regulation No. 35/2018 on the investment coordinating board and Finance Ministry Regulation No. 5/2018 on tax holiday, only 17 pioneer industries can benefit from the tax holiday.

Investment Coordinating Board (BKPM) facility service Director, Endang Supriyadi, said in Jakarta on Thursday that the 17 pioneer industries covered 153 beneficiaries—151 industrial manufacturers and two infrastructure providers (electricity generation and toll roads).

The prevailing tax holiday regulation was only issued on March 29 with the objective to simplify procedures for investors to get the tax incentive, but the regulation failed to attract more investors availing themselves of the holiday.

“We plan to expand it to all sectors, including services that own large assets. Currently, the minimum investment to get the tax holiday is Rp 500 billion (USD 33.73 million),” said Endang, as quoted by, adding that the expansion of the tax holiday coverage was expected to attract more investors.


Source: The Jakarta Post