This Is It! Economic Policy Package XI
As the perfecting step of previous policy packages, the Government issued Economic Policy Package XI which focuses on tax cuts of DIRE product to 0.5% from the previous 5%. Related to these cuts, further Government will soon issue the Government Regulation (PP) that will regulate it.
In addition, the Government will soon issue a Government Regulation (PP) on incentives and investment facilities in the regional level, which among other things regulates the tariff reduction Customs Acquisition of Land and Building (BPHTB) to 1% from the previous which maximum of 5% for land and buildings that be DIRE’s asset.
By the existence of this new regulations, the total tax will be charged only 1.5%, which consists of Final Income Tax and BPHTB. The tax rate will be lower than which applied by Singapore on 3% rate. However, policy of DIRE tax reduction still subject to approval of local government (Pemda). If local government disagree, then the total tax of DIRE still in the rate of 5.5%.
Other than to discussing fiscal incentives, Economic Policy Package XI also prepare complete and integrated export financing facility for working capital and investment for micro, small and medium enterprises in the form of facilities Loan for Export Based Business (KURBE). Hereinafter, also will be set up Indonesia Single Management (ISRM) to suppress the length of stay in port / dwelling time, and the development of the pharmaceutical industry and medical equipment to suppress the number of imports.
In short, this policy package is expected to fix the current account deficit and accelerate economic growth.
Source : Summarized from Bisnis Indonesia (30 March 2016)