The Indonesian government is planning to introduce new tax holiday incentives for eligible pioneer industries. The current incentives will be simplified with a 5-year tax holiday for qualifying investments over IDR 500 billion, and a 20-year tax holiday for investments over IDR 1 trillion.
After the exemption period ends, a 50% reduction in the tax rate will apply for 2 years. In addition, the scope of eligible industries will be expanded to 17 and the application process will be simplified to provide that applications can be processed in as little as five days.
