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

Development of Industrial Zones (KI) in Indonesia: Challenges, Innovations, and Sustainability

Development of Industrial Zones (KI) in Indonesia: Challenges, Innovations, and Sustainability

Projection and Development Strategy of Indonesia's Industrial Zones 2025-2029

Projection and Development Strategy of Indonesia's Industrial Zones 2025-2029

Industrial Land Absorption in Jabodetabek Hits Highest Level Since Pandemic, Manufactur-ing Becomes Main Driver

Industrial Land Absorption in Jabodetabek Hits Highest Level Since Pandemic, Manufactur-ing Becomes Main Driver