Industri Padat Karya

Taxpayers that invest or expand into labor-intensive or pioneer industries can enjoy a net income reduction of 60 percent of their total investment in the form of tangible fixed assets, which includes any land used for  the main business activities over a certain period.

The Ministry of Industry defines a labor-intensive industry as one that employs a minimum of 200 workers with labor costs not exceeding 15 percent of production costs, while the Ministry of Finance defines a pioneer industry as one that provides value-added economic consequences to the surrounding areas, introduces new technologies, and provides strategic value for the national economy.

 

Source: asiainvestmentresearch.org


Related Post

Potential Growth in Indonesia's Automotive Market

Potential Growth in Indonesia's Automotive Market

Indonesia's Electric Vehicle Policy Initiatives for Local Industry Development

Indonesia's Electric Vehicle Policy Initiatives for Local Industry Development

Indonesia's Ambitious Drive Towards Electric Vehicles

Indonesia's Ambitious Drive Towards Electric Vehicles