Major Job-Absorbing Projects Become Priority for Tax Incentives

Jakarta, CNBC Indonesia - The Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, has emphasised that the government is no longer solely considering the size of investment value as a criterion for granting fiscal incentives. One of the key criteria to be prioritised is the extent of job absorption.

“Our parameters are not solely about granting incentives because of large investments; we also look at the aspect of job absorption. This is also becoming a very important factor in providing fiscal incentives going forward,” said Rosan during a press conference at his office in South Jakarta on Thursday (23/4/2026).

Rosan gave an example of one investment receiving incentives from the government. The investment is a coconut processing project worth US$100 million in Morowali, which is nearly complete in its construction and has the potential to receive government incentives.

According to Rosan, the project absorbs 10,000 workers. Although the investment value is only US$100 million, the employment is very high. In addition, this investment is part of efforts to promote the downstreaming of natural resources programme. Therefore, this investment receives fiscal incentives.

“I am giving an example of the coconut investment, US$100 million in Morowali, which, God willing, is almost finished. This is an investment of US$100 million, but we see the job absorption reaching 10,000 people. So, in terms of investment, it’s not large, but the job absorption is very high,” he said.

The coconut factory is planned to be completed in 2026 and is projected to absorb up to 500 million coconuts per year from people’s plantations.