Indonesia has extended its tax incentives for "pioneering" industries such as oil refinery and infrastructure to help attract more investment into the country as economic growth has slowed to its weakest in six years. Indonesia is now offering a tax reduction of between 10 and 100 percent for up to 15 years to firms investing a minimum of 1 trillion rupiah ($71.5 million) in certain industries, the finance ministry said in a statement on its website on Monday.
The tax break can be extended for an additional five years if companies obtain permission from the finance minister. Previously, the tax break was up to 10 years and if companies qualified, they could obtain 100 percent relief. The ministry said "pioneering" industries are those that "have wide relevance, give added value and high externality, introduce new technology and have strategic value for the national economy". They include maritime transport, telecommunications, downstream metal production and agricultural processing. The new incentives went into effect on August 16.
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