5 Criteria Recipient Investor Tax Holiday

Jakarta - The Ministry of Industry (Kemenperin) has formulated five criteria of investors receiving tax holiday incentive. Five criteria will be given to certain industries including the agricultural industry sector.

"Now you have opened and discussed, are considered tax holiday," said the Directorate General of Agro-Based Industry Ministry of Industry Wachjudi Benny in his office, Jakarta, Monday (10/18/2010)

Benny explained the five criteria that include industry given tax holiday is an industry pioneer or pioneers. The second is that the industrial sector investment into the establishment or strengthening of industrial structure upstream to the downstream side of the industry,
Third, the industrial sector which has a sizable investment, the four industries that absorb a lot of manpower. And the fifth is to meet the needs of regional development or a particular region.

He explained that such incentives are in essence, to develop and enhance existing hilirisasi industry for the creation of added value in the country. Especially for the agricultural industry sector, there are three commodities that will be enhanced downstream products (processing of finished goods), namely oil palm, cocoa, and rubber.

It is said Benny, based on existing data in 2007 from the total Indonesian palm oil production as much as 34.55% is exported, in 2008 the greater reach 44.4% in 2009 even penetrated 50.08%. As for rubber production in the year 2007 were 87.37% and in 2009 as much as 83.27%

In the cocoa sector, in 2007 from 68.04% the total production of cocoa beans exported raw materials, and in 2009 exported as much as 66.65%.

"This is what drives us to commit to cultivate in the country," he said.

According to Benny, the government will also review the PP No.62 of 2008 on incentives in certain areas of certain industries to continue to attract investment in order to increase investment in downstream sector. Even the government also plans to conduct a special institutional related fiscal incentives.

"The possibility we explore the formation of institutions in fiscal incentives. Now in PEPI already exist, in the four working groups," he said.

Source : detikfinance.com, October 18, 2010