On 12 November 2019, the government issued Regulation No. 78 Year 2019 which expanded the tax incentive program for more business sectors. The regulation entered into force on 13 December 2019. The regulation provides income tax facilities for investment in certain business fields and in certain regions. The new rule is a revision of Government Regulation Number 18 of 2015 and Number 9 of 2016. In the new regulation, the number of certain business sectors entitled to get facilities increased to 166 business sectors.
The incentive entitled in the form of a reduction in net income by 30% of the total investment in the form of fixed assets including land which is charged for six years by 5% a year.
The government also added a compensation if the investors experienced loss more than 5 years and additional compensation for one year to all investments in all attached business sectors. It included in industrial and bonded zones, new and renewable energy sector accompanied by incurring economic infrastructure costs and social activities in certain business locations.
