Tax facility extended

JAKARTA (JP): The government has given a three-year extension to a tax facility granted to both domestic and foreign investors in a bid to attract more investment.

The Investment Coordinating Board (BKPM)'s deputy chairman for industry assessment and licensing, Wardijasa, said yesterday that the facility was supposed to expire on March 31 but has now been extended until March 31, 1998.

"We need to extend this facility because we do not offer tax holidays to investors like some other countries do," Wardijasa said.

Under decree No. 327/A.1/1996, signed by BKPM Chairman Sanyoto Sastrowardoyo on April 1, both domestic and foreign investors who acquire investment licenses prior to March 1998 can postpone value added tax and luxury tax payments on the imports of capital goods for three years from the time they acquired their licenses.

"This facility is to encourage investors to realize their investment commitments," Wardijasa said.

The current rate of realization for foreign investment is only 50 percent, while domestic investment realization is much lower. (rid)