The Indonesian government announced the seventh tranche of the economic policy package on Friday to ease the inflow of investment in the country.
The package comprises two regulations, Cabinet Secretary Pramono Anung told a press conference that was also attended by Coordinating Minister for Economic Affairs Darmin Nasution, Minister of Agrarian Affairs and Spatial Layout/Chief of the National Land Agency (BPN) Ferry Mursidan Baldan, and Deputy Chairman of the Investment Coordinating Board (BKPM) Azhar Lubis.
The first regulation is related to labor-intensive industries which deserve a tax allowance under article 21 of the income tax law and the second regulation is about revising government regulation number 18/2015 which allows five labor-intensive industries to receive tax allowances, he said.
In the seventh phase of the economic policy package, it would now be possible to issue nine different kinds of permits in a span of three hours of application, instead of the four kinds of permits feasible hitherto, he pointed out.
The nine types of permits include investment permit, deed endorsement, taxpayer code number, land blocking certificate, corporate registration number, plan to employ foreign workers, producer identification number and customs identification number.
Vice President Jusuf Kalla said earlier in the day that the seventh tranche of economic policy package will ease the flow of investment into the country.
“It will focus on ways to ease investment and provide incentives,” he said.
He remarked that the policy package is aimed at accelerating and easing investment opportunities in the country.
The policy package is also expected to lower the cost of investment and thus opening up the labor-intensive industry, he pointed out.
The Indonesian government has issued a series of economic policy packages in an effort to maintain the countrys economic fundamentals in the face of dynamic global challenges, Coordinating Minister for Economic Affairs Darmin Nasution noted recently.