Tax Holiday for Investments Over 4-8 Years

Tax Holiday for Investments Over 4-8 Years - Tax holiday is a facilities tax exemption (tax) for the period tertentu.Penerapan incentives or tax holidays, tax exemption on investments made during 4-8 years.

"We will give investors a large scale. If not given, they do not want to invest in Indonesia," said Chief Investment Coordinating Board (BKPM), Gita Wirjawan in Jakarta, Sunday, January 23, 2011.

Tax holiday is a facilities tax exemption (tax) for certain periods, especially for investors. Currently, the Ministry of Finance was finalizing this rule.

Gita admit, though not final discussion, but it was optimistic that these incentives will be implemented this year. "We are still discussing the form with the Ministry of Industry and Ministry of Finance. But, I'd like this year," he said.

Regarding the desire of investors who requested tax holiday for 10 years, he said, BKPM will consider a sustainable impact and scale of which will be created. "We will not sell out incentives," said Gita.

Gita added, with a tax holiday is expected to trigger investors to establish industries and opening new jobs.

The recommended companies get tax holiday, is Posco, South Korea to build steel plant PT Krakatau Steel Tbk together with an investment of Rp 6 trillion. Furthermore, there are Kuwait Petroleum Corporation with an investment of U.S. $ 6-8 billion.

In addition to tax holiday, the Ministry of Finance will also provide an incentive package for the entry of foreign capital flows (foreign direct investment). Among other things, prepare the rules of the land acquisition laws and offers infrastructure development through public-private partnership (public private partnership).

Meanwhile, the BKPM this year targeting the realization of an investment of Rp240 trillion or up 15 percent from the achievements of 2010. Gita target growth in domestic investment rose 40 percent or a total of Rp96 trillion.

Gita optimistic, it can exceed the target by two requirements. First, the rate of inflation can be kept at 6-7 percent, and second, government private partnership projects can be realized.