Other Briefings
Indonesian FDI Highest Among ASEAN Members in First Half of 2015
With growing uncertainty over China’s economic stability, recent FDI statistics released by the Financial Times come as a reassurance that investors are taking a more pragmatic, nuanced approach towards risk mitigation in Asia.
Indonesia Expands List of Pioneer Industries Eligible for a Tax Holiday
Indonesia’s Ministry of Finance (MOF) has announced that it will extend its list of “pioneer” industries that qualify for tax holidays. Such companies are eligible to receive a 70 percent exemption from income tax for between five and 15 years, as well as additional financial incentives. The proposed changes should take effect later this month.
Indonesia Raises Import Tax on a Range of Goods
The Indonesian government has announced that it is raising the import tax rate on a large number of goods, including food, clothing, and other consumer products. The move comes as the country continues to search for a method of jumpstarting its weak economy, which has been experiencing its slowest growth in six years. The government is also hoping that the new tax rates will help support and grow local industries.
Indonesian Yarn Manufacturers Seek Safeguards to Prevent Foreign Yarn Dumping
Led by the Indonesian Synthetic Fiber Association (ISFA), yarn manufacturers in Indonesia are petitioning their government to impose a temporary safeguard duty on imported yarn products.
Beijing to Sydney by Train: The Potential Development of a Singapore, Indonesia & Australia Rail Network
The China-Singapore rail project has been getting a lot of attention over the past few years as these routes continue to develop. But why stop at Singapore? How about taking the train from Beijing to Sydney? In this article, Chris Devonshire-Ellis discusses the creation of such a rail route.
Indonesia to Change Luxury Goods Tax, Mulls Raising PIT-Exempt Threshold
Several items will soon be exempt from Indonesia’s luxury tax. The country is also considering raising the individual income tax-free allowance by 50%.
Indonesia-Singapore Bilateral Investment Guarantee Agreement to Expire
The bilateral agreement signed by Indonesia and Singapore in 2005 will not be renewed by Indonesia, and is set to expire on June 20, 2016. This bilateral agreement, commonly known as an investment guarantee agreement (IGA), grants protection to Singaporean investors.
Indonesia Extends Tax Holiday in Bid to Attract More Foreign Investment
Indonesia has announced plans to extend the validity of the country’s tax holiday from the current 10 years to a maximum of 15 years. The tax holiday applies to investments over IDR 1 trillion (US$76 million), labor-intensive investments, and investments into eastern Indonesia (an economically poorer region). Additionally, the tax holiday will be applied to investments into “pioneer” sectors.
Indonesia Gives Tax Breaks to Exporting Manufacturers
Indonesia has brought in tax breaks for enterprises exporting a minimum of 30 percent of their production, in line with tax breaks for multinationals re-investing profits in-country rather than sending profits and dividends to overseas shareholders.
Indonesia’s Economy Struggles to find its Footing
For the second quarter in a row, Indonesia’s economy contracted as exports and government spending continued to decline – GDP was down 0.18 percent. The country’s currency, the rupiah, also fell.
