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Tax Incentives Attract China to Indonesia

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15 April 2018 11:30 WIB

Indonesia's Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan, left, shakes hands with Chinese Foreign Minister and State Councillor Wang Yi as they pose for the media before their meeting on April 12, 2018 at the Diaoyutai State Guesthouse in Beijing, China. Parker Song/Pool via REUTERS

TEMPO.CO, Jakarta - According to the Coordinating Minister of Maritime Affairs Luhut Binsar Pandjaitan, a Chinese company has shown its interest to invest USD 10 billion into several Indonesian regions.

Furthermore, Luhut said that the Chinese company has several business partners in Indonesia and is prepared to develop industries in areas including Morowali, Central Sulawesi, North Halmahera, and North Maluku.
According to Luhut, the investment is not part of the 21st century One Belt One Road (OBOR) Initiative China had initiated.

The company is interested in developing the steel and carbon industries together with its local partners. In addition, the company also expressed its plan to develop lithium batteries that would be used to power electricity-based vehicles in Indonesia.

In addition, Luhut said that the Chinese company is interested in investing in Indonesia because of Indonesia’s tax incentive policy for foreign investments that is valued at USD 2.5 billion.

ANTARA

Investment


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