Factsheet: New Income Tax Facilities

New Income Tax Facilities

Key Information
In order to boost economic growth, the Government recently issued the second amendment, Government Regulation No. 18 Year 2015 (“GR-18/2015”) to Government Regulation (“GR”) No. 1 Year 2007 (“GR-1/2007”) regarding income tax facilities on investments in certain business sectors and/or in certain regions within Indonesia (the first amendment, GR-52/2011, was issued in 2011) to attract more foreign and domestic businesses to invest in those industries and regions, effective 6 May 2015, together with implementing guidelines: Minister of Finance Regulation No. 89/PMK.010/2015 (“PMK-89/2015”), the Chairman of Indonesian Investment Coordinating Board (“BKPM”) Regulation No. 8 Year 2015 (“BKPM-8/2015”) and Minister of Industry Regulation No. 48/M-IND/PER/5/2015. Unlike GR-52/2011, there is no minimum investment amount stipulated in GR-18/2015 to obtain these new Income Tax Facilities. The investment criteria are any investments that have: 1. High investment value; 2. Export orientation; 3. High intensive labor; or 4. High local content. These Tax Facilities will be granted to both new investors and existing investors for business expansion investing in various qualified sub-business sectors located in qualified locations/regions within Indonesia. The qualified sub-business sectors that are applicable to all regions in Indonesia and to very specific locations in various regions in Indonesia are listed on the hyperlink see legislation text
Increase the share of renewable energy in electricity production.

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