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by M. Harri Santoso 15 November 2012
INDONESIA
The Investment Coordinating Board of the Republic of Indonesia
Outlines
II. Investment Opportunities
US/Eurozone financial crisis
US/Eurozone demand shock
China asset bubble burst
Oil price
shock Total Score
Taiwan
3
1
3
3
10
Korea
4
6
4
2
16
Hong Kong
1
4
2
10
17
Singapore
2
3
4
9
18
Malaysia
6
2
5
6
18
Thailand
7
5
6
1
19
China
10
8
1
7
26
Philippines
5
7
8
8
28
Indonesia
9
9
9
4
31
India
8
10
10
5
33
Source: Credit Suisse
The Investment Coordinating Board of the Republic of Indonesia
ASEAN markets in context (by country)
The Investment Coordinating Board of the Republic of Indonesia
Source: Bank Indonesia
The Investment Coordinating Board of the Republic of Indonesia
The Investment Coordinating Board of the Republic of Indonesia
Investment opportunities
•
The i creasi g tre ds of I do esia’s i dustrial products a d relati ely co sta t o
export of its industrial products, indicates the expanding of Indonesia domestic
consumption during these past years.
•
The domestic production on automotives, machinery, chemicals, steel, as well as
pharmaceuticals sub-sectors are still limited; therefore foreign manufacturers can
increase its business in Indonesia through investment in those sub-sectors.
Tax Holiday
A legal umbrella for tax holiday, Government Regulation (PP) No. 94
year 2010 concerning Computation of Non Taxable Income and Tax
Payments in Current Year, has been stipulated.
Implementing regulation, Minister of Finance Decree (PMK) No. 130
year 2011 concerning tax holiday has been enacted on August 2011.
Tax holiday will be given on a selective basis i.e. pioneer investor
particularly :
- Base metal industry
- Oil refinery industry
- Machine industry
- Renewable energy industry
- Telecommunication equipment industry
Tax holiday application and approval will be reviewed by verification
The Investment Coordinating Board of the Republic of Indonesia
The Investment Coordinating Board of the Republic of Indonesia
Negative Investment List on Industry…(1)
Reserved for Local Micro, Small and Medium-sized Enterprises and Cooperatives
• Salting/drying industry and boiling industry of fish and other waters biota
• Processed food from seeds and roots, sago, gnetum gnemon nut and copra industry
• Roots peeling and cleaning industry
• Palm Sugar
• Thread coloring from natural and artificial fiber to be patterned/dipped/tied thread, performed by hand work
tools
• Cloth printing industry especially batik and traditional patterns
• Hand painted batik industry
• Knitted cloth industry especially Lace
• Handy craft industry that carries specific cultural asset, art value using natural or artificial raw Material
• Mosle o a ’s prayi g cloth, scarf, head scarf, a d other traditio al i dustries
• Rubber curing industry
• Clay made household necessities industry especially pottery
•Manual or semi mechanical processed hand tool industry for handwork and cutting
• Hand tool industry needed for farming to prepare land, process production, post harvest and processing except
hoe and shovel
• Motorcycle Maintenance and Repairing Industry except the one integrated to motorcycle sales business
Negative Investment List on
Industry…(2)
Partnership
•Sweetening and saline fruits and vegetable industry
• Copra industry; soya sauce industry; soy made food and peanuts other than soya sauce, tempe, tofu industry; cracker, chip, peanut cracker and the like
• Milk powder process and condensed milk industry
• Tobacco drying and processing industry
• Printed batik industry
• Rattan processing industry and rattan, bamboo and the like, preserving industry
• Mangrove wood industry
• Essential oil industry
• Construction material made from clay industry, goods made from lime industry and goods made from cement industry
• Nail, nuts and bolts industry, component and spare parts to start up motor industry, pump and compressor industry, components and two and three wheels vehicles accessories industry, bike and becak accessories industry
• Agricultural machinery industry using medium technology such as rice peeler, corn peeler and hand tractor
• Maritime tourism, wooden ship and fish catching industry including its tools and equipment
• Silver jewelry industry
• Other hand craft industries
The Investment Coordinating Board of the Republic of Indonesia
Negative Investment List on
Industry…(3)
Special licenses
•
Cigarette industry
•
Pulp industry (from wood)
•
Valuable paper industry such as bank note paper, cheque paper, watermark paper
•
Special printing industry/security documents such as stamp, stamp duty, valuable paper,
passport, demography documents and holograms
•
Money printing industry
•
Cyclamate and saccharin industry
•
Special ink industry
•
Crumb rubber industry
•
Lead smelting industry
Foreign ownership
•
Car maintenance and repair (maximum 49%)
THANK YOU
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