ANNOUNCEMENT 14 Aug 2015In August 2015, the government of Indonesia announced a targeted tax change.
NUMBER OF INTERVENTIONS
Indonesian Finance Ministry regulation 159/PMK.010/2015 (in Bahasa Indonesia)
On 14 August 2015, the Indonesian Finance Ministry announced regulation 159/PMK.010/2015 extending the investment-related income tax reduction for pioneering industries (cf. Related Measures) from a maximum of 10 years to 15 years, with a possible further extension of 5 years.
Article 1(3) specifies that pioneering industries as those that "have extensive connections 'i.e. a vastly interconnected supply chain', provide added value and high externality, introduce new technologies, and have a strategic value for the national economy" (own translation).
The regulation came into force on 16 August 2015.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.