Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said fiscal policy played a role in providing a good investment climate in Indonesia.
In the National Economic Recovery (PEN) program, for example, the APBN provides fiscal policy in the form of tax incentives for the business world. This incentive also applies to companies operating in the oil and gas sector.
"We provide a broad perspective on Indonesia's tax issues, which I believe is also very important for the oil and gas sector," said Suahasil in Jakarta, Wednesday (1/9).
Suahasil said that the various tax incentives provided by the government made corporate income tax fall by 22 percent this year. This decline in revenue will continue until next year by 20 percent.
"Currently, our corporate income tax rate is going down. This year it is 22 percent, next year 20 percent is for corporate income tax. And of course, this is for all sectors, this is for all companies," said Suahasil.
Even so, the tax incentives provided by the government aim to improve the investment climate. So that companies can reduce the level of losses due to the impact of the Covid-19 pandemic. Furthermore, the company was able to improve its financial condition to maintain its business in the Covid-19 pandemic situation.
Starting last year, the government also provided different tax incentives. This is intended to reduce expenses, especially the company's cash flow burden. The reduction of PPh article 21, article 22, and article 25 is also expected to provide space for oil and gas sector companies to get through this pandemic.
"The government is committed that we really want to support the oil and gas sector," he said.
