ASEAN KEY DESTINATIONS
Indonesia announces 2nd economic package
The government on Tuesday announced the second economic package, which contained new policies to accelerate domestic investment in a bid to boost the economy while the rupiah plummets.
One of the new policies is a stimulus package to quicken the process of obtaining industrial park investment permits from "a few days" to "a matter of hours".
"If the investors come directly to the Investment Coordinating Board (BKPM) with a complete document, the license will be issued in only three hours," said Coordinating Minister for Economic Affairs Darmin Nasution in a press conference, as quoted by kontan.co.id.
BKPM Head Franky Sibarani said the license could be issued in three hours, including the principle permit, the approval of the business entity’s name and the tax identification number (NPWP) issuance.
"Thus, the investors can get down to constructing their industrial park right away.”
Finance Minister Bambang Brodjonegoro said another economic policy was designed to bring in foreign exchange earnings from exports (DHE), by giving tax discounts for all DHE kept in local banks.
“The amount of the discount is subject to the duration of the DHE. If the DHE is in US dollars, businesspeople will receive tax discounts on the DHE deposit,” Bambang said.
If the DHE is kept in month-long US dollar time deposit, he continued, the tax would be slashed from the previous 20 percent to only 10 percent. As for the three month US dollar time deposit, the tax will be 7.5 percent, while the six month US dollar time deposit will be taxed 2.5 percent.
"If it’s kept in a time deposit that lasts one year or longer, then it will be tax-free," Bambang said.
The tax discount will be much bigger if the exporters save their DHE in rupiah.
The one-month rupiah time deposit will be subject to a 7.5 percent tax, the three-month time deposit will be taxed 5 percent and the six-month rupiah time deposit—and those with longer maturities—will be tax free. (ags/bbn)
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