Govt Speeds up Tax Allowance Process

TEMPO.CO, Jakarta – The discussion on the revision of Government Regulation No.52/2011 on Income Tax Facility for Investment will soon be completed. Investment Coordinating Board (BKPM) chief Franky Sibarani said that the revision on tax allowance includes the shortening of the process of incentives approval to no more than 50 days.

"The revision will be published in about two days," he said yesterday.

The government will simplify the process of applying for tax incentives so it will no longer take months. Investors can apply through the PTSP or simply by sending an email, afterwhich their requests will be screened b relevant ministries, the BKPM, and the Ministry of Finance.

A speedy process, Franky said, will attract investors to place their money in Indonesia. From November 2014 to February 2015, the BKPM has received US$1 billion worth of investment principle permits.

The tax allowance simplification process is part of the government's economic policy package aimed at restructuring the economy. The government will provide tax incentives for businesses, especially those with huge investments, divest their dividends in Indonesia, and export at least 30 percent of their products.

ADITYA BUDIMAN | AYU PRIMA SANDI