Investment Incentives

Government policy support incentives to attract investors, which can include fiscal facilities (such as tax relief) or non-fiscal facilities (such as licensing convenience). The goal is to encourage capital investment, business expansion, job creation, and economic growth in specific sectors or regions.

Tax Allowance

Tax allowance is a tax facility that provides a reduction in Corporate Income Tax (CIT) of 30% of the capital investment amount made for 6 years (with 5% reduction per year). This scheme is available for Certain Business Fields and/or in Certain Areas that have been determined by the government. In addition, tax allowance also includes several other facilities, such as:

Accelerated asset depreciation, which allows companies to depreciate assets faster than permitted in normal tax regulations.
Dividend tax rate reduction, which applies to companies receiving dividends from domestic and foreign sources.
Extension of tax loss carry forward period up to a maximum of 10 years.

Improvement Points:

Tax allowance facilities only apply to certain business fields listed in the business fields determined by the government through Government Regulation No. 78 of 2019. The number of registered sectors can change based on applicable government policies.

Premium Investment Incentives

Comprehensive incentive programs specifically designed to support and accelerate your investment in Indonesia.

Tax Holiday

Corporate income tax exemption for a certain period, granted to new investments in strategic business fields or certain regions.

Key Benefits

Corporate income tax exemption up to 20 years

Applicable for new investment and expansion projects

Can be extended after the initial period ends

Tax Allowance

Corporate income tax reduction of 30% of investment amount for 6 years for certain business fields.

Key Benefits

30% tax reduction of investment amount

Accelerated asset depreciation

Tax loss carry forward up to 10 years

Customs Facilities

Import duty relief for capital goods and raw materials for investment purposes.

Key Benefits

Import duty exemption for capital goods

VAT exemption for capital goods imports

Streamlined customs and import processes

Investment Allowance

Additional deduction from gross income for certain investments that can reduce tax payable.

Key Benefits

Additional deduction from gross income

Reduces taxable income burden

Applicable for various types of investments

Priority Industries

Six strategic industrial sectors that are the main focus of government incentive programs to support national economic growth.

Pioneer Industry

First-mover industries with breakthrough innovations and strategic importance

Advanced Manufacturing

High-tech manufacturing with sustainable production processes

Industry 4.0

Digital transformation and smart manufacturing technologies

Digital Economy

Technology-driven business services and digital innovation

Renewable Energy

Clean energy solutions and sustainable power generation

Strategic Infrastructure

Critical infrastructure development and supporting facilities

Full Government Support

Each priority sector receives comprehensive support through integrated incentive policies, licensing facilities, and access to supporting infrastructure to accelerate investment and operations.

Fiscal Incentives

Licensing Facilities

Infrastructure Support

Investment Incentives

Tax Allowance

Accelerated asset depreciation, which allows companies to depreciate assets faster than permitted in normal tax regulations.
Dividend tax rate reduction, which applies to companies receiving dividends from domestic and foreign sources.
Extension of tax loss carry forward period up to a maximum of 10 years.

Improvement Points: