IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 20 Aug 2015 | Removal date: open ended
Still in force

Tax or social insurance relief

 On 20 August 2015, the Indonesian Finance Ministry announced regulation 161/PMK.010/2015, revoking a 1990 decision, 748/KMK.04/1990, which introduced a 50% reduction of the land and construction tax in all provinces apart from Java, Sumatra and Bali for the following industries:

  • "agriculture
  • plantation;
  • farms;
  • fisheries;
  • mining;
  • forestry;
  • Industry;
  • Real Estate / Industrial Estate;
  • Hospitality and tourism development services;
  • Economic infrastructure and facilities as well as transportation services by land, sea and air." (art. 1(1) of decision 748/KMK.04/1990; own translation)

The lowered tax was available for the first eight years after obtaining the land allocation permit.
The regulation came into force on the day of its announcement.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 

AFFECTED COUNTRIES

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