BKPM Again Proposes Extension Of Incentives For Investment In 18 Industrial Sectors

Photo: Doc. BKF

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) has again proposed extending tax incentives in the form of tax holidays and mini tax holidays for investment in 18 pioneer industry sectors, considering that the incentives will end on October 8, 2024.

"We are also proposing an extension to the Ministry of Finance, today we submit the letter. Because later as of October 8, the period of providing tax holidays facilities based on PMK 130 of 2020 will end, because the period is only given 4 years," said Director of Investment Deregulation of BKPM Dendy Apriandi in a discussion with the Ministry of Industry in Jakarta, quoted from Antara, Thursday, August 15.

The 18 sectors include the upstream, purification, or oil and gas-based basic metal industry, oil and gas-based organic chemicals or coal, agricultural, plantation or forestry-based organic basic chemical industries, aerospace industry support, pharmaceutical main raw materials, electromedical irradiation equipment, the main electronic equipment component industry, the engine industry, and the engine's main components, as well as robotic components for manufacturing.

Furthermore, the main component industries of power generation machines, motorized vehicles and main components, the main components of ships, the main components of trains, inorganic basic chemistry, agricultural, plantation and forestry-based processing, economic infrastructure, and the digital economy.

According to him, the tax relief is given for new investment and expansion, with an investment value of at least Rp. 100 billion. Meanwhile, for tax holidays, 100 percent of the agency's income tax (PPh) reduction is given with an investment value of more than Rp. 500 billion.

Furthermore, Dendy said that his party proposed extending the incentive for two years.

"Initial indicators we proposed two years," he said.