Sri Mulyani Promises To Give Tax Incentives For Halal Industrial Zones

Minister of Finance, Sri Mulyani. (Doc. National Committee on Islamic Economics and Finance)

JAKARTA - The government is serious about working on the potential of the world's halal products. Given that the world's halal product industry continues to grow, in 2024 the consumption of global halal products is estimated to reach 3.2 trillion US dollars. One of the government's efforts is to strengthen the halal industry through special industrial areas.

Finance Minister Sri Mulyani said that the government will prepare incentives for tax holidays or tax holidays, tax allowances, tax deductions or super tax deductions, and customs fiscal incentives for halal industrial estates in Indonesia.

Furthermore, Sri said, incentives were given to make the production of halal products more competitive and able to make Indonesia a hub for halal products at the international level.

"Various incentives are given both for the halal industrial area and those conveyed from the tax instrument we can use a tax holiday, tax allowance. If the industry needs it and it is included in the developed area, it can be obtained. We provide industrial estates with customs and excise support," he said. , in a webinar entitled 'Indonesia Towards the World Halal Center', Saturday, October 24.

Sri explained that the tax holiday and tax allowance incentives can be enjoyed by industry players who build factories and develop production in the halal industrial area.

This tax incentive applies to Article 22 Import Income Tax (PPh). In addition, incentives can also be given to business actors who build halal product research centers and vocational education.

Then, said Sri, another incentive that will be obtained from the tax side is the return of tax overpayments, aka accelerated restitution, so that the excess funds can be used to increase the speed of production machines. In addition, other conveniences include collective tax payments.

"The use of a better IT system and also risk management, as well as various integrated tax and customs systems. So that taxpayers do not need to do it individually. They can only do it once and get a joint service. We are currently building a single submission document. her, "he explained.

Not only that, Sri said, the government will also provide customs incentives for businesses that import raw materials and capital goods for the needs of producing halal products. The condition is that the halal products produced are export-oriented. He considered this facility to increase industry competitiveness.

On the other hand, Sri said, the government is also preparing other incentives, such as free halal product certification fees for MSMEs. This incentive is as compensation for the mandatory policy for certification of halal products, including for MSME products. This incentive provision is in the Omnibus Law on Job Creation.

"We are preparing how to provide zero percent tariffs for MSMEs, especially in the food sector to obtain halal certificates," he said.

For your information, currently there are two halal industrial areas approved by the government, namely Modern Cikande Industrial Estate in Serang, Banten and SAFE n LOCK Halal Industrial Park in Sidoarjo Regency, East Java. Meanwhile, four others are in the process.