Government’s super deductible tax incentive launched on 1st half 2019

Cikarang, Jawa Barat (ANTARA) – The Government of Indonesia is going the whole hog to offer fiscal incentives in the form of tax relief to industries investing in vocational and research and development activities in the initial half of 2019.

During the inauguration of the operation of PT Schott Igar Glass’ machine in Cikarang, West Java, on Wednesday, Industry Minister Airlangga Hartarto elaborated that industries cooperating and working with senior high and vocational schools will be able to avail a further reduction in gross income by nearly 200 percent of the incurred expenses.

The minister is upbeat that firms would be instrumental in implementing the link and match vocational program by promoting vocational schools in tune with the demands of the business world.

Hartarto believes that benefits of the super deductible tax policy that include fiscal incentives tax allowances and tax holidays will expedite growth of the country’s manufacturing industry and prepare it for the fourth industrial revolution, popularly known as industry 4.0.

Under the novel tax relief scheme, the Industry Ministry has proposed up to 200 percent tax relief for industries that invest in vocational education and a 300 percent tax relief for those involved in research and development activities in order to create innovation, the minister noted.

In the meantime, Schott Igar Glass Finance Director Erwin Ruslie remarked that the firm involved in manufacturing pharmaceutical instruments await the immediate realization of the fiscal incentives.

“In fact, it (the incentive) was made public only today. We are awaiting its implementation. Moreover, we are unaware of its specification,” he added.

Source: ANTARA News