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Tuesday, 13 March 2018 00:00

Ease of Tax to Push Investment

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Ease of Tax to Push Investment


The government of Indonesian is enthusiastically encouraging investment that is an important and supporting aspect of a country's economy. No wonder, it is attempting to increase both domestic and international investment. Therefore in addition to providing infrastructure, the government has also issued several economic policies since 2015. Until 2017, there have been sixteen volumes of policy packages; some of which are aimed at supporting and pushing investment.

In addition, the government through the Ministry of Finance is also finalizing four new regulations that will soon be ratified in coming weeks. The objective is to enhance investment as President Joko Widodo expressed in the target of economic growth in 2018. The four regulations are about tax holiday or tax incentives in the form of exemption of income tax, tax allowance or tax deduction; tax of small-medium enterprises -SMEs, and incentives for companies conducting research and development and vocation.

With its vast area, Indonesia does need a lot of capital to ensure all regions to get adequate fund for development. Besides, Indonesia is an archipelagic country, so development could be hampered due to access and mobility reasons. In fact, Indonesia has a wealth of nature and a very large potential. The strategic location between the two continents: Asia and Australia and the two oceans: India and the Pacific is also Indonesia's advantage in the international market. Therefore, the government is increasingly aware of the importance of foreign investment in the development of Indonesia. In addition to exploiting a large area, foreign investment may also bring about positive impacts on Indonesia.

The number of foreign investors coming and investing in Indonesia certainly cannot be separated from the attitude of the government in providing facilities and tax ease. How will foreign investors invest their capital in Indonesia, if the government imposes a burdensome tax system, especially if there is no adequate facility?

Even though foreign investment is needed to encourage and promote the Indonesian economy, it must be done in an orderly manner and in accordance with the investment regulations, instead of harming the country and the nation of Indonesia in the future. 

Read 1152 times Last modified on Wednesday, 14 March 2018 08:59