Indonesia Reduces 50% Corporate Income Tax For Textile Industry And Footwear Industry

The Investment Co ordinating Agency (BKPM) has recommended to the Ministry of economic co ordination that

The industrial and shoemaking industry will reduce the 50% corporate income tax, and the Ministry of economic development can publish the preferential tax policy after the relevant regulations are formulated.

Frankie, director of the investment co ordination agency, said that the above recommendations had been made to the Minister of economic co ordination, but there were several conditions for tax exemption concessions. First, enterprises employed at least 5000 workers, two of them had BPJS, and three were 50%.

The preferential period is 5 years.

Frankie said the preferential tax policy is designed to promote the development of labor intensive industries in Indonesia.

At present, Indonesia's new labor force is far beyond the ability of enterprises to receive. Therefore, the government must encourage labor-intensive industries such as textile and footwear industry to develop. These two kinds of industrial products not only sell at home, but also export to foreign markets, increase foreign exchange and create employment opportunities for the country.

In 2014, the textile industry exported to US $5 billion 560 million, and the footwear industry exported to US $2 billion 290 million. The textile and footwear industry absorbed 106 thousand and 100 people, equivalent to 6.2 times the number of other sectors.