Brodjonegoro added that those companies that organize training programs or research and development programs for their workers are eligible to obtain tax incentives as this will enhance the Indonesian workers’ skills and competitiveness.

This policy package is the third in a series that has been implemented since August 2013 when Indonesia was hit by serious capital outflows amid a period of extreme global uncertainty due to the looming end of the Federal Reserve’s quantitative easing program in combination with Indonesia’s widening current account deficit, high inflation and slowing economy. As a result, the benchmark stock index (Jakarta Composite Index) and rupiah exchange rate weakened significantly in the second half of 2013.

Details about this third policy package will be presented on our website after these have been announced by the government.