Implementation Of Economic Policy Package Volume VI
After announcing the Economic Policy Package Volume V in October, the Government showed again their seriousness in conducting reforms in the economic field by publishing Economic Policy Package Volume VI. Implementation of this policy package is to load about incentives for special economic zone (KEK), management of water resources and the simplification of import licenses medicinal raw materials and food by the Food and Drug Supervisory Agency (BPOM).
KEK is an area/region developed to ease, both for investors developers/area managers and investors of manufacturing industry will be located in that region, with the main objective to attract investment and improve competitiveness.
In this package, there are eight special economic zone which receive a number of incentives ranging from tax discount, the acceleration of the licensing process, to the special wage councils. Eight of the region are Tanjung Lesung Banten, Sei Mangkei Sumatera Utara, Palu Sulawesi Tengah, Bitung Sulawesi Utara, Mandalika NTB, Morotai Maluku Utara, Tanjung Api-api Sumatra Selatan dan Malaoi Batuka Transkalimantan di Kalimantan Timur.
Principles of facilities and services that will be provided in KEK include the following fields:
- Taxation
- Customs
- Property Ownership For Foreigners
- Tourism
- Employment
- Immigration
- Land
- Licensing
Some other important points discussed in this economic policy package are:
- In the case of tax incentives facilities, this package gives tax holiday of 20% -100% for the main activity which is the main resource in the KEK area. Meanwhile, outside the main activity is not the main resource in the area get a tax allowance that the reduction of about 30 percent over six years.
- One of the incentive that prepared in Tourism activities such as Development Tax I reduction of 50-100% and Amusement Tax reduction by 50-100% for the construction of tourist destinations in KEK.
- Government assured the private investors who had issued a permit for water resources management remain valid license.
- Government slashed import licenses drugs and raw materials to less than 1 hour. This deadline can be achieved because the permit is done paperless also known as online.
In short, this policy package is expected to make the public and the business community are passionate, open employment, and allowing people for work better.
Source : Harian Bisnis Indonesia Edisi 9 November 2015