Wed, 06 Jul 2011

Jakarta (ANTARA News) - The government is considering granting a tax holiday to investors who participate in the implementation of the Master Plan for Indonesian Economic Development and Expansion (MP3EI), a minister said.

Coordinating Minister for Economic Affairs Hatta Rajasa said here on Monday final discussions on the idea would be done at a cabinet meeting on Thursday.

"Just now we looked into several things related to the facility, which industries are to receive and on what criteria they could receive it. Those things have all been settled and so we would just wait until Thursday for its final discussion on Thursday," he said after a coordination meeting on the MP3EI and Tax Holiday.

The meeting was attended by finance minister Agus Martowardojo, industry minister MS Hidayat, minister of cooperatives, small and medium businesses Syarief Hasan, minister for national development/head of National Development Planning Board Armida S Alisjahbana, transport minister Freddy Numberi and head of the National Economic Committee, Chairul Tanjung.

Hatta said industries to receive the incentive were the ones hat are innovative, raw materials development-based and capable of employing a lot of workers such as refineries and petrochemical industries.

He declined to tell in detail sectors that would receive the facility.

Regarding sectors that develop geothermal energy he said investors interested in it are eligible for receiving the incentive.

"They are is under the category of innovative or renewable industries although it is not specific. So it is possible for them to be included in the sectors to receive tax allowance as we just now also discussed Government Regulation Number 61 in connection with tax holiday. The criteria is oriented more on structure while the implementation is tailor-made," he said.

Finance minister Agus Martowardojo said five industrial sectors would possible receive the tax holiday facility. He however declined to tell them as the decision was not yet final.

"The tax holiday discussion is not yet final. We still have to prepare revisions. But there are five sectors we are trying to give a priority in our tax system," he said.