Financial Incentive

Tax Incentives Not For All Industries

VIVAnews - Head of Indonesian Employers Association (Apindo) Sofjan Wanandi stated that the government must adapt with the business world concerning policies and incentives - that not just any sector should be granted incentives.

"The government must prioritize sectors that absorb many employees," he said during the interval of a National Seminar of Indonesian Chamber of Commerce at the Jakarta Convention Center, Jakarta, Dec. 21.

The fund that the government prepares to secure industries only amounts to Rp 12.5 trillion. Therefore, the government must have a sharp priority. The government must also be distinctive and firm in providing facilities. "Whether it is concerned with tax incentives or income tax," he said.

He reminded that in addition to sectors that create employment, industries that highly utilize local supplies must also be included in the incentive policies. He said that if the government were confronted by choices involving automotive and housing, then housing must prevail.

According to Wanandi, the housing industry gains its raw materials from domestic sources and it absorbs many employees. Moreover, small- and medium-sized enterprises absorbing many employees must also be specially monitored.

"Automotive industry uses more imported materials," he said. Electronic industry also use many imported materials.

As for troubled entrepreneurs, he suggested that the business players should report their problems clearly and state the exact fund they need. "Minister for the Economy has already said that those who need help should request for aid," he said.


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Translated by: Bonardo Maulana Wahono

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VIVA.co.id
28 Maret 2024