The October package will contain various tax incentives (tax holiday and tax allowance) that aim to attract foreign investments. One example of a revision to Indonesia's tax holiday scheme involves the minimum investment amount. Currently, investments that meet a number of criteria are entitled to a tax holiday. One of these criteria is the minimum amount that needs to be invested. This amount is presently set at IDR 1 trillion (USD $88.5 million) but is expected to be tuned down to IDR 500 billion (USD $44.2 million). This information was given by the deputy minister of Finance, Bambang PS Brodjonegoro.

The government also wants to give more advantages to larger investments. Currently, a company that invests IDR 1 trillion receives the same advantages as a company that invests IDR 20 trillion. Through tax incentives, the government intends to give more benefits to the company that makes a larger investment.  

Details about Indonesia's August package can be read here.

Bahas