Four Facilities of Income Tax for New Investor
Friday, 16 March, 2007 | 16:29 WIB

Tempo Interactive, Jakarta: The government keeps pushing investment. Yesterday (03/15), the Finance Minister Sri Mulyani Indrawati has announced the granting of four facilities of Income Tax for new investors of a certain business and/or region.

“This is aimed at improving the investment climate,” said Minister Sri Mulyani at the parliamentary complex, Jakarta, after attending a meeting with Special a Committee of the Draft Bill on Taxes and Regional Retribution.

The policy, according to her, was noted in Finance Ministerial Regulation Number 16/PMK.03/2007.

The regulation was the implementation of Governmental Regulation Number 1/2007, validated since January 1.

However, the Association of Indonesian Entrepreneurs has considered the four facilities as having a small effect upon the investment climate.

The reason is that infrastructure improvement will still be the priority to support the increase of investment in Indonesia. “It must be supported by other revisions such as the Tax Draft Bill, Capital Investment Draft Bill and Manpower Draft Bill,” Sofjan Wanandi, Head of the Association of Indonesia Entrepreneurs, told Tempo when contacted from Jakarta yesterday.

However, the Indonesian Textile Association (API) has said that the government's decision will not affect the textile industry more. The incentives will only aim at half of the elements of the overall textile production.

Secretary General of API Ernovian G. Ismy said that the textile industry entails all production processes, upstream and downstream: fiber, yarn, cloth, to garment.

“So, (tax incentives) seems halfhearted,” he told Tempo.

Anton Aprianto | Agoeng Wijaya
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