Government Offers Tax Deduction of Up to 300 Percent for Semiconductor Research

The Indonesian government will provide tax incentives up to 300 percent to encourage research and development of semiconductor technology in Indonesia. The incentives take the form of tax deductions and apply to companies that collaborate with universities on research and development of semiconductor technology and the strengthening of semiconductor talent. ‘Tax incentives already exist related to R&D and education, where the government can provide tax deductions to companies that work with universities, with the deduction ranging from 200 to 300 percent,’ Airlangga Hartarto said at the National Talent Seminar 2026 on semiconductor graduates in Jakarta, on Thursday (5 March 2026). He explained that the semiconductor industry requires a strong ecosystem, with universities playing a role in preparing human resources and research aligned with industry needs. The roles of the ministry and universities are important to bridge the business world with educational institutions. The synergy is expected to ensure these incentives are used more optimally. ‘This is from the Directorate General of Higher Education (Ditjen Dikti) to bridge industry with universities, and also to coordinate with the Minister of Finance, because the tax deduction policy involves the Minister of Finance’s role,’ he said. The government urges the Directorate General of Higher Education to strengthen facilitation of cooperation between companies and universities in research. Companies are also urged to utilise the tax deduction facility through coordination with the Directorate General of Taxes, Ministry of Finance.