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Govt Provides Incentives for Exporting Investors

23 March 2015 14:32 WIB

Franky Sibarani Kepala Badan Koordinasi Penanaman Modal (BKPM) saat dilantik di Istana Negara, 27 NOvember 2014. Tempo/Aditia Noviansyah

TEMPO.CO, Jakarta – The Investment Coordinating Board (BKPM) has started to draft the criteria of companies that will receive incentives from the government. The move is part of the government policy to hold back the rupiah from plummeting further against the US dollar by attracting more investment and provide easing for export-oriented investors.

The government hopes that increased volume and value of export revenues will keep the greenback from gaining further on the rupiah.

"We are still simulating the draft to figure out the best formula," BKPM chief Franky Sibarani said in his office last week.

Franky said the amount of incentives will vary depending on the value of investment, labor absorption, and domestic components level. "The incentives for companies that invest Rp1 billion and employ 1,000 people with a local content of 90 percent will be different from that who invest Rp2 billion," he said.

The incentives concept is expected to be ready within the next six months.

URSULA FLORENE SONIA



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