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he Investment Ministry/Investment Coordinating Board (BKPM) has proposed extending the tax holiday and mini tax holiday for new and expanded investments across 18 industrial sectors, including mining, oil and gas, and manufacturing.
The current incentives are set to expire on Oct. 8, four years after the government first granted them through Finance Ministerial Regulation (PMK) No. 130/2020.
BKPM investment deregulation director Dendy Apriandi said the agency had submitted the proposal to the Finance Ministry on Thursday.
“We believe the incentives are crucial for supporting key industries,” he said on Thursday.
“For starters, we’ve proposed a two-year extension [for the incentives],” he noted.
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To qualify for the incentives, companies need to commit at least Rp 100 billion (US$6.3 million) for new projects or expansions to acquire a 50-percent corporation tax cut.