JAKARTA - The Indonesian Employers' Association (Apindo) considers that the situation of weakening the community's economy and industrial productivity needs to be taken seriously by the government.
The government is considered to need to prepare a more relevant and selective tax policy as a step to break the chain of weakening productivity amid global economic pressures.
Apindo's Head of Tenegakerja Bob Azam said the strategy that was considered effective was the provision of tax relaxation in sectors with high elasticity to state revenues.
Bob said the government needed to choose the right sector to be given tax relaxation and stimulus. Thus, it can have a direct impact on economic turnover.
"The government can relax, but it must be chosen which sector when given relaxation is able to increase state revenues higher, sectors that have a 1.5 times elasticity," said Bob when met at the Ministry of Industry office, Jakarta, Wednesday, July 30.
He gave an example, when the government provided tax relaxation during the COVID-19 pandemic, where there were two sectors that received stimulus with a big impact on the economy and state revenue. The two sectors are automotive and house purchases.
Then, the Sales Tax on Luxury Goods (PPnBM) is given to the automotive sector which has been able to increase 1.5 times the state revenue from taxes.
"When COVID-19 was implemented in the automotive sector, once it was given relaxation, sales increased. In fact, the government's revenue increased," he said.
Previously, the Ministry of Industry (Kemenperin) confirmed that it would provide fiscal incentives to labor-intensive industries.
BACA JUGA:
The labor-intensive incentives are expected to increase the purchasing power of workers and the productivity of domestic industries.
The Director General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita, said that the industrial incentives included spending on capital goods by providing low interest subsidies for the purchase of machines, KUR with light interest rates to tax incentives for Article 21 of the DTP.
"If he attaches two labor-intensive incentives. The main thing is that he is for capital goods, when he takes it for capital goods, he also allows to get a working capital loan," said Reni when met at the Ministry of Industry Building, Jakarta, Tuesday, July 29.
"Incentives for labor-intensive industries that will buy capital goods expenditures, they will get low interest rates. He (paid) should be 9 percent, will be borne by the government, which is 4 percent. So, the industry only pays 5 percent," he continued.
Industry players can borrow capital from Himbara banks, including regional banks such as BPD.
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