Jakarta, January 15, 2024 – The Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced the launch of a new economic policy package aimed at encouraging investment and accelerating national economic recovery.
Key Points of Policy
- Fiscal Incentives
- Corporate income tax deduction for priority industries
- Tax holiday of up to 20 years for investments above IDR 10 trillion
- VAT exemption for strategic production tools
- Import duty facilities are borne by the government
- Ease of Licensing
- Integrated one-stop licensing system
- Acceleration of the licensing process to a maximum of 3 days
- Digitize the entire licensing process
- Elimination of 50 overlapping regulations
- Priority Sectors
- Processing industry
- Renewable energy
- Digital infrastructure
- Healthcare industry
- Green Economy
Targets and Projections
- Investment in 2024: IDR 1,400 trillion
- Economic growth: 5.2-5.7%
- Job creation: 3 million
- Export increase: 15%
“This policy package is designed to increase Indonesia’s competitiveness in the midst of global competition,” said Airlangga.
Response of Business Actors
The Chamber of Commerce and Industry (KADIN) positively welcomes this policy:
- Potential increase in foreign investment
- Improving the business climate
- Legal certainty for investors
Implementation and Supervision
The government established a special task force to:
- Implementation monitoring
- Periodic evaluation
- Coordination between ministries
- Solving obstacles in the field
“Implementation will begin immediately with the target of completing technical regulations within 30 days,” Airlangga concluded.