Indonesian manufacturers encouraged to invest in fac - leatherbiz: Lea Leatherbiz

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Indonesian manufacturers encouraged to invest in factories and workers

25/07/2019
Under new fiscal incentives that Indonesian president, Joko Widodo, unveiled in late July, companies and investors that open new businesses or expand existing businesses in “labour-intensive” sectors will receive substantial tax breaks.

Footwear is one of the sectors that create high levels of employment in Indonesia and investments in new or existing shoe manufacturing facilities there will qualify for the benefits.

The government’s idea is to offset 60% of the capital companies invest in these projects against their taxable net income.

At the same time, companies that invest in in-house training, internship or other education programmes will be able to offset against tax up to 200% of what they invest.



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