JAKARTA - The government has decided to provide incentives in the form of tax exemptions on mergers and acquisitions of State-Owned Enterprises (BUMN) until 2029.
This policy aims to accelerate restructuring and increase the efficiency of state-owned enterprises.
Minister of Finance Purbaya Yudhi Sadewa said the incentive had been implemented as part of the government's efforts to accelerate the BUMN transformation agenda.
Until now, said Purbaya, the process of merger and merger of SOEs has been considered to incur high costs due to the burden of taxes in asset transactions and various other corporate actions.
He emphasized that the main objective of the policy was to create a leaner, more efficient, and more profitable company structure, so the government decided not to impose taxes during the restructuring process.
"The goal is for efficiency. For me, what is important is that the company will be more streamlined. Fortunately, it is more profitable, more efficient. So at the time of the process, there is no tax that we withdraw," said Purbaya to the media, Thursday, May 7.
Purbaya also revealed that the streamlining of SOEs had succeeded in reducing the number of company entities from around a thousand to around 248 companies.
According to him, the simplification of the structure needs to be supported by fiscal policy so that the consolidation process can run faster without additional cost burden.
However, he conveyed that tax exemption only applies to transactions related to mergers, acquisitions, and other corporate restructuring actions.
Purbaya said that the tax obligation on the company's income would still be imposed as per the normal provisions.
He added that the government provided an incentive period of three years until 2029, and after the period ended, BUMN merger and acquisition transactions would return to the general taxation scheme applicable to all companies.
Purbaya said this policy was prepared to support the government's target in accelerating the consolidation of SOEs.
He added that President Prabowo Subianto targeted the restructuring process of state-owned enterprises to be completed in a short time.
Purbaya said that the incentive was given so that the process of efficiency and transformation of SOEs could take place faster and not incur large costs.
According to him, the tax exemption facility is currently being implemented in line with the various corporate actions in the state-owned enterprise environment.
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