ANNOUNCEMENT 20 Aug 2015

In August 2015, the government of Indonesia announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Ministry of Finance regulation 161/PMK.010/2015 (in Bahasa Indonesia):
http://www.jdih.kemenkeu.go.id/fullText/2015/161~PMK.010~2015Per.pdf

Ministry of Finance decision 748/KMK.04/1990 (in Bahasa Indonesia):
http://www.jdih.kemenkeu.go.id/fullText/1990/748~KMK.04~1990Kep.pdf


Inception date: 20 Aug 2015 | Removal date: open ended

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 SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A