New Indonesia stimulus starts with expanded tax perks

Jakarta

TWO weeks after a cabinet reshuffle, Indonesian President Joko Widodo's revamped economic team promised a "big" stimulus plan as global market turmoil increases pressure on policy makers. The team's first act: an expansion of past tax holidays.

Chemicals, machinery, agricultural, maritime transport and upstream oil and gas companies investing more than 1 trillion rupiah (S$100 million) will get lower taxes for between 5 years and 15 years, Finance Minister Bambang Brodjonegoro told reporters in Jakarta on Thursday. Tax reductions will be between 10 per cent and 100 per cent, he said.