Rosan: Tax Holiday Has A 25 Percent Role In Investment

Minister of Investment, Rosan Roeslani (center). (Photo: Doc. Antara)

JAKARTA - Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani admitted that the corporate tax exemption or tax holiday had been extended by Finance Minister Sri Mulyani.

"Because the tax holiday has an important role, the proportion is very large to the incoming investment, which is approximately above 25 percent," said Rosan in Jakarta, quoted from Antara, Monday, November 4.

The extension has been stated in the Minister of Finance Regulation Number 69/2024 concerning Amendments to PMK 130/2020 concerning the Provision of Agency Income Tax Reduction Facilities.

However, in extending the regulation, the "tax holiday" levy does not apply to foreign companies, this is due to the implementation of a global minimum tax of 15 percent.

The tax application of 15 percent, he said, has been carried out by around 100 countries so that if Indonesia does not collect the minimum tax of 15 percent, then the country of origin of the foreign company will collect it.

Furthermore, he admitted that he had socialized this for foreign investors regarding the global minimum tax.

His party has also conducted an assessment so that the Indonesian government can provide compensation for the 15 percent tax in other forms.

"So we have conveyed to the recipients of this 'tax holiday' if it is enforced there will be adjustments. But don't worry, we can provide incentives in other forms so that the 15 percent 'tax holiday' can be compensated in other forms, as far as referring to the regulations," he also said.

These efforts, according to him, are one of the government's strategies so that domestic companies are more interested in investing in their own country.