Prabowo Issues Government Regulation 28/2025: Businesses Can Apply for Eight Tax Facilities via OSS System
President Prabowo has issued Government Regulation (PP) Number 28 of 2025. The regulation, enacted on 5 June 2025, details eight tax facilities that investors and business operators can apply for through the Online Single Submission (OSS) system. These incentives are specifically contained within the investment facilities subsystem.
"The simplification of business licensing through the implementation of Risk-Based Business Licensing (PBBR) requires continuous policy reform to facilitate ease in starting and running businesses in support of job creation," states the Considerations section of PP Number 28 of 2025.
The Electronically Integrated Business Licensing System, or Online Single Submission (OSS), is an integrated electronic system managed and operated by the OSS institution for the administration of PBBR. The OSS system must be used by ministries and agencies, provincial governments, district and city governments, Special Economic Zone (KEK) administrators, Free Trade Zones and Free Ports (KPBPB), and business operators.
The OSS system comprises the following subsystems: information services; basic requirements; business licensing; investment facilities; partnerships; and supervision.
**Eight Tax Facilities Available Through OSS**
Based on Article 235 of PP Number 28 of 2025, the following eight tax facilities can be applied for through the OSS system:
1. Application for import duty exemption on the importation of machinery, goods, and materials for industrial development or expansion within the framework of capital investment;
2. Application for import duty exemption on the importation of capital goods for the development or expansion of the public electricity generation industry;
3. Application for import duty exemption or relief on the importation of goods under contracts of work or coal mining exploitation agreements;
4. Application for corporate Income Tax (PPh) reduction facilities;
5. Application for Income Tax facilities for capital investment in certain business sectors and/or certain regions;
6. Application for gross income reduction for the organisation of practical work activities, apprenticeships, and/or learning programmes in the context of developing competency-based human resources;
7. Application for gross income reduction for certain research and development activities in Indonesia; and/or
8. Net income reduction facilities for new capital investment or business expansion in certain business sectors classified as labour-intensive industries.
"The simplification of business licensing through the implementation of Risk-Based Business Licensing (PBBR) requires continuous policy reform to facilitate ease in starting and running businesses in support of job creation," states the Considerations section of PP Number 28 of 2025.
The Electronically Integrated Business Licensing System, or Online Single Submission (OSS), is an integrated electronic system managed and operated by the OSS institution for the administration of PBBR. The OSS system must be used by ministries and agencies, provincial governments, district and city governments, Special Economic Zone (KEK) administrators, Free Trade Zones and Free Ports (KPBPB), and business operators.
The OSS system comprises the following subsystems: information services; basic requirements; business licensing; investment facilities; partnerships; and supervision.
**Eight Tax Facilities Available Through OSS**
Based on Article 235 of PP Number 28 of 2025, the following eight tax facilities can be applied for through the OSS system:
1. Application for import duty exemption on the importation of machinery, goods, and materials for industrial development or expansion within the framework of capital investment;
2. Application for import duty exemption on the importation of capital goods for the development or expansion of the public electricity generation industry;
3. Application for import duty exemption or relief on the importation of goods under contracts of work or coal mining exploitation agreements;
4. Application for corporate Income Tax (PPh) reduction facilities;
5. Application for Income Tax facilities for capital investment in certain business sectors and/or certain regions;
6. Application for gross income reduction for the organisation of practical work activities, apprenticeships, and/or learning programmes in the context of developing competency-based human resources;
7. Application for gross income reduction for certain research and development activities in Indonesia; and/or
8. Net income reduction facilities for new capital investment or business expansion in certain business sectors classified as labour-intensive industries.