Indonesia’s Government Regulation 78 of 2019 (GR 78/2019), sets out a variety of income tax incentives for businesses investing in specific provinces (such as Aceh, Greater Jakarta, and Riau) and industries, such as marine and fisheries, pharmaceuticals, IT, and energy, among others, in the country.
These incentives come in the form of tax deductions, the accelerated depreciation of fixed tangible assets, and the accelerated amortization of intangible assets. The regulation also increases the period for fiscal loss compensation, in addition to setting the income tax rate on dividends for foreign taxpayers at 10 percent.
The government offers a deduction of the net income by 30 percent of the total investment value. This is charged at five percent per year for six years, in the form of intangible assets, including land.