The Coordinating Ministry for Economic Affairs noted that an investment of IDR 921.84 trillion will receive an income tax exemption facility (tax holiday) until the end of December 2020. This investment consists of 81 projects.
Deputy for the Coordination of Macroeconomics and Finance of the Coordinating Ministry for Economic Affairs, Iskandar Simorangkir, said the 81 projects would develop industries from upstream to downstream in Indonesia. One of them is downstream nickel.
"There are 81 projects developing the downstream industry, one of which is nickel. The government will encourage the car industry to emerge," said Iskandar in a Webinar: DBS Asian Insight Conference 2021, Monday (22/3).
However, Iskandar did not specify when the investment that will receive the tax holiday facility will be realized. He also did not elaborate on which sectors other than nickel will receive the tax holiday.
Previously, the Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that an investment of IDR 1,000 trillion had received a tax holiday facility. However, not all of these investments have been realized.
"But the investment has not been carried out yet," said Bahlil.
To that end, BKPM is reviewing regulations regarding the implementation of the investment realization grace period for tax holiday recipients. If it exceeds the specified time limit, the government will revoke the tax facility.
Indeed, we have a discourse to make a rule that the time period, the tax holiday grace period, if the road is not realized, will be revoked," said Bahlil.
Bahlil added that most likely the deadline is more than one year. However, these are still being studied at BKPM.
