Investment Incentives
Indonesia offers one of the most generous investment incentive packages in Southeast Asia, with up to 20 years of tax holiday in Special Economic Zones.
Tax Holiday (CIT Exemption)
Indonesia's tax holiday provides complete corporate income tax (CIT) exemption for qualifying investments.
Tax Holiday Duration by Investment Size
Based on Government Regulation PP 78/2019
| Investment Amount | CIT Exemption | Reduction Period |
|---|---|---|
| IDR 500B - 1T (~USD 31-62M) | 5 Years | + 2 Years at 50% |
| IDR 1T - 5T (~USD 62-312M) | 7 Years | + 2 Years at 50% |
| IDR 5T - 15T (~USD 312M-937M) | 10 Years | + 2 Years at 50% |
| IDR 15T - 30T (~USD 937M-1.87B) | 15 Years | + 2 Years at 50% |
| > IDR 30T (>USD 1.87B) | 20 Years | + 2 Years at 50% |
Pioneer Industries (Additional Benefits)
Pioneer industries receive enhanced benefits regardless of investment size:
- • Upstream metals industry
- • Oil refining
- • Petrochemicals
- • Industrial machinery
- • Agricultural processing
- • Digital economy infrastructure
- • Renewable energy
- • Economic zone development
SEZ Fiscal Incentives
Special Economic Zones like Kendal SEZ offer the most comprehensive incentive packages in Indonesia.
Corporate Income Tax
- Up to 20 years 100% CIT exemption
- 10-25% CIT reduction for export-oriented
- Reduced CIT rate during transition period
Import Duties
- 0% import duty on machinery
- 0% import duty on raw materials
- Import duty exemption on goods for production
VAT & Excise
- VAT not collected in SEZ
- Excise suspension/exemption
- Luxury goods sales tax exemption
Land & Building
- Land & building tax reduction (50-100%)
- BPHTB exemption (land acquisition)
- Long-term land lease available
Immigration
- Multiple entry visa for investors
- Work permit facilitation
- Residence permit support
Administrative
- One-stop permit service
- Customs facilities
- Investment coordination support
Super Deduction for R&D
Indonesia offers generous super deduction incentives for companies investing in research & development and vocational training, allowing up to 300% deduction from taxable income.
R&D Super Deduction
Up to 300% deduction for R&D activities in designated priority areas
Vocational Training
200% deduction for approved vocational training programs
Labor Intensive
Additional CIT reduction for labor-intensive industries
Super Deduction Rates
How to Apply for Incentives
Register via OSS
Create account on Online Single Submission (OSS) system
Submit Application
Apply for tax holiday/allowance through investment license
Review Process
BKPM reviews eligibility and investment plan
Incentive Granted
Receive fiscal incentive decree upon approval
Key Requirements
Get Personalized Incentive Guidance
Our investment team can help you navigate the incentive application process and maximize your benefits.