Tax Holiday From Indonesia

Indonesia will give a tax holiday for investors committing at least $117 million into sectors including metals and energy, an effort to spur record levels of foreign direct investment in Southeast Asia's biggest economy.    

The G20 member aims to become a world top ten economy by 2025 through boosting investment, improving infrastructure and developing industries that add value to its position as a leading producer of resources such as tin, palm oil and coal.    

Finance Minister Agus Martowardojo said he will issue a regulation later on Monday on the scheme, which will cover base metals, oil refining, petrochemicals, renewable energy,machinery and telecoms equipment.

This will exempt investors from paying taxes for between five and 10 years after their companies start operations, though the duration was still being discussed, he said. Existing investors that have operated commercially for under one year may also ask for a tax holiday, he added.

"The impact will be huge. It can help us reach our 2011 investment target," said the country's investment chief Gita Wirjawan, referring to a target to get 240 trillion rupiah of investment this year.    

       

Foreign direct investment surged 21 percent in the second quarter of 2011 from a year earlier as strong commodity prices attracted investors into the mining sector, even without a tax holiday.

       

       

(Source:reuters)