Indonesian

Ta x H o l i d a y
Presentation
Special for Double M
Ke y Point
Indonesian Goverment Rule MoF
No 130 FY 2020

18 Sector Of Industries

Reduction Corporate Income Tax

How to Apply and Comply

 Theo Ariandyen
Author
Theo Ariandyen

This Presentation is Special for Double M

G o v e r n m e n t R e g u l a t i o n M i n i st r y
O f F i n a n c e (MoF) N o 130 F Y 2 0 2 0

Introduction: O ve r v i ew of the
regulation a n d its significance in
supporting pioneer industries in
Indonesia.
 Government Regulation
N u m b e r 130 of 2 0 0 0
In Government Regulation Number 130 of 2000, there
a r e 18 i n d u s t r i a l s e c t o r s i n c l u d e d i n t h e s c o p e o f
p i o n e e r i n d u st r i e s . T h e s e s e c t o r s a r e d e f i n e d a s
industries that have broad linkages, provide h i g h
value-added and ex te r n a l i t i e s , introduce new
te c h n o lo g ie s , a n d h a v e s t r a t e g i c v a l u e for t h e n a t i o n a l
e c o n o m y.
 List of Pioneer
Industries
The pioneer industries include:

Upstream basic metal industry

O il re fin in g or p e tro l e u m a n d n a t u ra l g a s
p r o c e s s in g in d u s t ri e s
Basic organic chemical industry derived from
p e tro leu m , n a t u ra l g a s , and/or coal, with or w i t hout
in te g ra te d d e riv a t iv e s
B a s ic o r g a n ic c h e m ic a l i n d u s t r y d e r i v e d f r o m
a g r i c u l t u ra l , p l a ntat i o n , o r fo re st r y p ro d u c t s , w i t h
o r w i t h o u t i nte g rate d d e r i vat i ve s .
 List of Pioneer
Industries
The pioneer industries include:

B a s i c i n o r g a n i c c h e m i c a l i n d u s t r y, w i t h or without
i n t e g ra t e d d e r i va t i v e s .
M a i n p h a r m a c e u t i c a l ra w m a t e r i a l s i n d u s t r y, w i t h
o r w i t h o u t i nte g rate d d e r i vat i ve s .
M a n u f a c t u r i n g o f ra d i at i o n , e l e c t ro m e d i c a l , o r
e l e c t r o t h e ra p y e q u i p m e n t .
Manufacturing of main components for electronic
o r te l e m at i c s e q u i p m e nt .
 List of Pioneer
Industries
The pioneer industries include:

Manufacturing of machinery and main c o m p o n e n t s

o f m a c h in e ry.
Ma n u fa c t u rin g o f r o b o t i c c o m p o n e n t s s u p p o r t i n g
t h e p ro d u c tio n o f m a n u f a c t u r i n g m a c h i n e s .
Ma n u fa c t u rin g o f m a i n c o m p o n e n t s o f p o w e r
generation machines.
M a n u fa c t u rin g o f m o to r v e h ic l es a n d m ai n
c o m p o n e n t s o f m o to r v e h ic l e s .
 List of Pioneer
Industries
The pioneer industries include:

Manufacturing of m a i n c o m p o n e n t s of ships.
Ma n u fa c t u rin g o f m ai n c o m p o n e n t s o f trai ns .
Ma n u fa c t u rin g o f m ai n c o m p o n e n t s o f ai rc raft a n d
s u p p o r t in g t h e a e r o s p a c e i n d u s t r y.
P ro c e s s i n g o f a g r i c u l t u ra l , p l a ntat i o n , o r fo re st r y
p ro d u c t s t h at p ro d u c e p u l p o r i t s d e r i vat i ve s .
Economic infrastructure.
D i g i t a l e c o n o m y, i n c l u d i n g d a t a p r o c e s s i n g
a c t i v i t i e s , h o st i n g , a n d re l ate d a c t i v i t i e s .
 T h e Facility
R e d u c t i o n i n C o r p o r a t e I n c o m e Ta x : E x p l a n a t i o n o f t h e t a x
reduction percentages based on the investment value

·100% reduction for investments of at least 500 Billion IDR or

around 30,56 Million EUR
·50% reduction for investments between 100 Billion IDR or 6,11
Million EUR until 499,99 Billion IDR or 30,55 Million EUR

R ate : 1 E U R = 1 6 , 3 6 5 . 4 7 I D R
 T h e Facility

R e d u c t i o n i n C o r p o r a t e I n c o m e Ta x : E x p l a n a t i o n o f t h e t a x
reduction percentages based on the investment value

The duration of the reduction in corporate income tax varies

based on the planned investment value. It ranges from 5 (five)
tax years to 20 (twenty) tax years, depending on the investment
value
H o w to Eligible
Classified as Pioneer Industries

I n d o n e s ia n le g a l e n ti ti e s

m a k e n e w in v e s t m e n t s t h a t h a v e n o t b e e n
previously approved

Meet the provisions regarding the debt-to-

equity ratio and

C o m m i t t o s t a r t i n g t h e im p le m e n t a ti o n o f
t h e in v e s t m e n t p l a n w i t h i n 1 ( o n e ) y e a r
after the issuance of the decision to
reduce
corporate income tax.
Point that Meet Up
Pioner Industries : XYZ Corp as Chemical/Electricity/Etc
Industries
Indonesian legal entities : P T X Y Z A B C Indonesia or
Establish Other Manufacturing that meet u p the
condition in Indonesia

Make new investme nts that have not been previously

a p p r o v e d a t l e a s t 1 0 0 M i o I D R : M a ke s u r e F i r s t

Meet the provisions regarding the debt -to-equity ratio

: M a ke s u r e F i r s t

C o m m i t to starting the implementation of the

investment plan within 1 (one) year after the issuance
o f the decision to re duc e co r po rate i n c o m e tax : Will
be sign the Mou later with Goverment of Indonesia
Anything
worth having
takes time.
That's a wrap!

Nov 2, 2023