Gov’t to Provide Incentives for Manufacturing Industry
Date 12 Maret 2020
The Government has announced a plan to provide the second phase of incentives for manufacturing industry after the Government provided incentives for tourism industry.
“At the first phase, the Government has provided incentives for tourism sector amid the flu pandemic,” Coordinating Minister for Economic Affairs Airlangga Hartarto told the reporters at the Presidential Palace, Jakarta, Thursday (12/3).
The Minister explained that tourism sector previously received incentives for hotel and restaurant tax facilities in the amount of ten percent or approximately worth Rp3.3 trillion.
“The Government is considering incentives for manufacturing industry. It has been discussed and will be reported to the President to get improvements. The Government will also suspend collecting employees’ income taxes (PPh 21) and the income tax paid monthly (PPh 25) as well as value-added tax (VAT) restitution,” Airlangga said.
On that occasion, Airlangga also said that the Government has offered the additional tax exemption for tourism industry.
“The policy will be effective by April this year, considering that it should be followed by a regulation of Minister of Finance. “We will evaluate the draft every three months,” he said.
Regarding the agricultural sector, Airlangga said that the Government will focus on commodities that have high added value and demand.
Airlangga further said that out of a total of Rp190 trillion for the People’s Business Credit (KUR), Rp50 trillion of which will be allocated for agriculture sector.
“We will distribute the funds to the cluster system and a group system so that the impact can be greater than before. Those clusters have been discussed with banking corporations,” Airlangga said. (FID / EN)
Translated by: Syarifah Aisyah
Reviewed by: M. Ersan Pamungkas