HIMKI Pushes for Implementation of Contribution-Based Incentives to Indonesia's Economy - BCA Sekuritas

The Indonesian Furniture and Handicraft Industry Association (HIMKI) is pushing for the implementation of incentive policies based on contributions to the national economy.

In a statement confirmed in Jakarta on Thursday, HIMKI General Chairman Abdul Sobur stated that this step is considered important for creating a healthy business climate and strengthening the competitiveness of the national industry.

According to him, incentives should be given based on contributions to the national economy, including increases in exports, job creation, technological investments, and strengthening the country’s foreign exchange reserves.

“Our view is that incentives should be based on contributions to the national economy, not merely the status of private or state-owned companies,” he said.

HIMKI assesses that companies recording significant export increases deserve fiscal incentives similar to those applied in China. Additionally, industries with high labour absorption rates are deemed to need support because they contribute to national job creation.

Not only that, companies investing in new machinery and technology are considered eligible for tax allowances or cheap financing. HIMKI also encourages relaxations for industry mergers aimed at increasing efficiency and competitiveness.