Attracting Investment through Tax Incentives Expansion


The Trade Ministry will expand the definition of the pioneer industry in the tax incentive regulation. The incentives, regulated in PMK No. 150/PMK.010/2018, will include electronics and telematics segments to attract more foreign investors in the semiconductor industry. The definition expansion of the pioneering industry allows the electronics and telematics industry to benefit from tax incentives, including the deduction of corporate income tax up to 100 percent.

As quoted by on Monday (10/7), Industry Ministry’s director of electronics and telematics, R. Janu Suyanto, mentioned several foreign investors of electronic manufacture service (EMS) intended to invest in Indonesia, such as Inventec and Compal, the Taiwan-based companies. As a result, the government planned to include EMS companies as the tax incentive recipients by expanding the definition of the pioneering industry.

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