ANNOUNCEMENT 20 Aug 2015In August 2015, the government of Indonesia announced a targeted tax change.
NUMBER OF INTERVENTIONS
Ministry of Finance regulation 161/PMK.010/2015 (in Bahasa Indonesia):
Ministry of Finance decision 748/KMK.04/1990 (in Bahasa Indonesia):
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:
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.