Ministry of Finance o f the Republic of Indonesia. Tax Policy in Indonesia. Presented by : MAHENDRA SIREGAR Vice Minister of Finance of The Republic of Indonesia for The Conference on Profit Generating Environmental Investment in Agri-business 29 th February 2012 Sultan Hotel, Jakarta.
Trends of Average Import Duties
(2006 – 2012)
Ratio of Non Tax Revenue /Domestic Revenue
The Government Mission for the year 2012:
Acceleration and Expansion of the Qualified Economic Growth, Inclusive and Fairness
to Improve People’s Welfare
4 Pillars of Development
Fiscal Policy Direction for the year 2012
Support the economy (by providing fiscal stimulus) while maintaining economic stability and fiscal sustainability
Taxation Policy Strategies
Encourage Direct Investment by Providing Tax Incentives for
GENERAL PATTERN IN TAX INCENTIVE
Tax Incentives to attract investment
High Priority Business Sectors/ Areas In The National Scale
Income tax relief for 5-10 years period after commencing the commercial production period.
50% Income tax reduction from Income Tax payable for additional 2 years period.
Indonesia Regained the Investment Grade from Fitch and Moody’s ....
(18 January 2012)
(15 December 2011)
(Ba3 Stable Outlook)
S&P(BB+ Positive Outlook)
Fitch(BBB- Stable Outlook)
The position of Indonesia investment grade reflects the strength and resilience of economic growth amid the global economic slowdown, fiscal discipline, strong external liquidity, and the prudent of macroeconomic, fiscal and monetary policies.
Moody’s, S&P, Fitch
Direct Investments in Indonesia
Foreign Direct Investment (PMA) and Domestic Direct Investment (PMDN)
Source: Bank Indonesia,Indonesian Statistic Board
Realization of Foreign Direct Investment (FDI/ PMA) and
Domestic Direct Investment (DDI/PMDN)
remain strong and positive.