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COMMENTARY ON US-INDONESIA COMMERCIAL DEVELOPMENTS FROM THE AMERICAN INDONESIAN CHAMBER OF COMMERCE

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Monday, August 22, 2011

INDONESIA GRANTS TAX HOLIDAYS FOR DIRECT INVESTORS

The Indonesian Investment Coordinating Board (BKPM) issued a press release today outlining a program of tax holidays to be granted to new investors via a decree of the Minister of Finance.

Click Here to View It

Important Features of the tax holiday:
  • Offered for 5 to 10 years after a company or project begins commercial production
  • 50% reduction offered for 2 years after the initial tax holiday ends
  • Priority sectors: basic metals, petroleum refineries, organic chemicals from petroleum or natural gas, machinery, renewable resources
  • Other sectors are eligible if they support "national competitiveness" or are deemed to be "pioneer" industries
  • Self assessment: The tax exemption must be applied for to BKPM or Ministry of Industry
  • An interagency verification committee considers the application and the Ministry of Finances issues a tax holiday decision letter




Wayne Forrest
President

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President of the American Indonesian Chamber of Commerce, a private not for profit membership organization based in NY.

These views do not necessarily represent those of the American Indonesian Chamber of Commerce or its members.

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