Incentive Scheme (Tax Allowance)

• Net income reduction by 30% of the investment value for 6 years (5% per year)
• Accelerated depreciation and 10% income tax on dividends
• Loss carryforward up to more than 5 years and no more than 10 years

Criteria (Tax Allowance)

• Labor-intensive
• High-value investment and export-oriented
• High domestic component rate
• Eligible for 166 business fields and 17 business fields in specific locations

Incentive Scheme (Investment Allowance)

• Net income reduction by 60% of the investment in fixed assets, including land used for business activities

Criteria (Investment Allowance)

• Labor-intensive
• High-value investment and export-oriented
• High domestic component rate
• Eligible for 166 business fields and 17 business fields in specific locations

Incentive Scheme (Super Deduction Tax For Vocation)

• Domestic taxpayers who engage in work practice, apprenticeship, coaching, and human resource development based on specific competencies

Criteria (Super Deduction Tax For Vocation)

• Gross profit reduction of up to 200% from the total cost incurred for conducting work practices, apprenticeships, or coaching

Incentive Scheme (Super Deduction Tax For R&D)

• Domestic taxpayers that conduct specific research and development in Indonesia

Criteria (Super Deduction Tax For R&D)

• Gross profit reduction of up to 300% from the total cost incurred for conducting research and development in Indonesia

Criteria (Tax Holiday and Mini Tax Holiday)

• Given to new investment or business expansion
• Minimum investment IDR 100 Billion
• Given to companies operating in any of the 18 Pioneer Industries
• If not included in the list, companies may request CIT reduction by fulfilling quantitative criteria comparable to Pioneer Industries with a minimum score of 80

Advantages

The system provides online business license submission, published by OSS institutions on behalf of the ministry, for individual or non-individual doing business.

• More practical
• Licenses can be secured in under an hour
• Accessible anytime and anywhere
• Electronically integrated
• Licensing process is monitored by the task force

Risk-Based Approach Permit

Permit stipulation will be based on the risk level and the scale of business

Requirements for Machinery

To be eligible for import duty facilities, imported machines must fulfill the following criteria:

• Intended for self-use
• Requests should be made no later than 3 years after obtaining a new Business Identification Number or adding new activities to an existing one. Initially valid for 2 years
• Can be extended for additional periods depending on investment value:

• For IDR 500 B – 1 T: 1-year extension
• For IDR 1 T – 5 T: 2×1-year extensions
• For > IDR 5 T: up to 5-year extension

Criteria

Import duty exemption facilities apply to industries that produce goods or services, including:

• Tourism and culture
• Public transportation
• Public health services
• Mining
• Construction
• Telecommunication
• Port

Requirements for Goods and Materials

To be eligible for import duty facilities, imported goods and materials must adhere to the following conditions:

• Intended for self-needs and production needs up to 2 years. Facilities are valid for 2 years initially and can be extended for 1 year
• If domestic component level exceeds 30%, facilities are valid for 4 years and can be extended for 1 year
• Requests must be made when products are ready for commercial production and no later than 1 year after commencing commercial production