Indonesia government to expand corporate tax discounts

[JAKARTA] Indonesia's government plans to offer corporate tax discounts under a revised tax holiday regulation to attract investors and boost economic growth, the Jakarta Post reported on Monday, citing Finance Minister Bambang Brodjonegoro.

The government would offer discounts ranging from 20 per cent to 100 per cent, with the change coming as early as July, the newspaper cited Brodjonegoro as saying in a recent interview.

The government currently offers tax breaks over 5-10 years to companies investing at least 1 trillion rupiah (S$101 million) in certain sectors, but plans to extend the length to 15 to 20 years, Brodjonegoro said, according to the Jakarta Post.

The sectors included in the policy would also be broadened, but the minimum investment required would remain 1 trillion rupiah, the newspaper reported.

Growth at South-east Asia's biggest economy has fallen to the weakest in around six years, hit by a drop in commodity prices and faltering consumption.

REUTERS