Indonesia offers tax incentives for exporters

Jakarta

INDONESIA is offering tax breaks to firms which export at least 30 per cent of their production in a bid to encourage shipments of manufactured goods now that the commodity boom is over.

The package, signed by President Joko Widodo earlier this month and effective in early May, also includes tax breaks for multinational firms which re-invest their profits locally instead of paying dividends to overseas stockholders, a move aimed at narrowing the current account deficit.