Recently the Ministry of Finance issued Regulation number 107/PMK.03/2017 on the Determination of the Moment of Acquisition of Dividends and the Basis for Their Calculation by Domestic Taxpayers for Capital Participation in Overseas Non-Listed Companies (New Regulation). Previously these matter were regulated under the Ministry of Finance Regulation number No. 256/PMK.03/2008 and the Minister of Finance Decision number 164/KMK.03/2002 (Old Regulations). The New Regulation focuses on income tax which is levied on dividends from controlled, non-listed foreign companies.
The Business Columns section of Indonesia Investments provides in-depth columns that exhibit an analysis regarding subjects that are both important for understanding the Indonesian business climate and have high news value in the current state of Indonesia's economy. As a whole these columns should provide the reader a thorough and detailed picture of multiple Indonesian business sectors and be a source of ideas or inspiration to invest - or not to invest - in specific sectors of the Indonesian economy.
Ciputra Development, one of Indonesia's leading property companies with 75 projects spread across 33 cities, is increasingly focused on diversifying its portfolio outside the island of Java. The company has expanded to Sumatra, Kalimantan and Sulawesi as it wants to "bet on more than one horse" to improve its corporate earnings.
Vincent Harijanto, Head of the Indonesian Pharmaceutical Association (GP Farmasi) business development committee, said about 95 percent of raw materials used in Indonesia's pharmaceutical industry need to be imported from abroad. This dependence on imports causes several problems, for example prices of pharmaceutical products are relatively high on the Indonesian market, while Indonesian pharmaceutical companies (and Indonesian consumers) can suddenly face rising prices in times of rupiah depreciation.
Over the past couple of weeks shares of Indonesia's largest bread products producer Nippon Indosari Corpindo have been recovering modestly after a severe plunge that occurred between mid-May and early July this year. On Monday (11/09) shares of the company were up 0.40 percent to IDR 1,250 a piece. So far this year, however, its shares have slid nearly 22 percent.
The views expressed in these business columns are the views of the authors or the interviewed persons only and therefore do not necessarily reflect the views of Indonesia Investments. The authors are free to ventilate their opinions about the Indonesian business climate. Facts presented in these columns are the result of the author's own research or indicated sources, read disclaimer.