GOVT CONSIDERING TAX HOLIDAY TO BOOST INVESTMENT

Jakarta, June 11 (ANTARA) - The government is considering to give a tax holiday to lure investors, a minister said.

Industry Minister MS Hidayat said here on Friday "I have talked with the finance minister and head of the Capital Investment Coordinating Board (BKPM) with regard to tax holiday."
He said the government's target of attracting up to Rp2000 trillion worth of investment must be addressed with competitive facilities and tax holiday would be one of them to create a good investment atmosphere.

"We will do it through an apple to apple comparison with Malaysia, Thailand and Vietnam," he said.

Hidayat had already expressed the idea since he was the general chairman of the Indonesian Chamber of Commerce and Industry (Kadin). The idea is now drawing the attention of Finance Minister Agus Martowardojo.

"What is important is being united first, having common vision," he said.

Former finance minister Sri Mulyani Indrawati had earlier approved the concept of tax holiday proposed by BKPM head Gita Wirjawan.

At the time however no unity had been reached with regard to the tax holiday term although the essence and concept that would be applied was the same as it has been applied in general.

The BKPM head wished to apply the term tax holiday as it is already generally recognized among foreign investors.

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