Investment Facilities Obtained by Foreign Investor
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Investment Facilities Obtained by Foreign Investor

Foreign investment is needed for the country to increase income and improve the country's economic level. Indonesia as a developing country is intensively increasing Foreign Investment to Indonesia in order to help improve the country's economy and open up jobs for the wider people. To increase the interest of foreign investors to Indonesia, the Indonesian government implements several facilities that can be obtained by Foreign Investors.

 The Regulation on Investment Facilities refers to the Investment Coordinating Board Regulation Number 4 of 2021 concerning Guidelines and Procedures for Risk-Based Business Licensing Services and Investment Facilities ("Perka BKPM No. 4/2021"). Based on Article 66 of BKPM Perka No. 4/2021, the Investment Facilities that can be obtained by PMA are as follows:

  1. exemption of import duties on imports;
  2. income tax for investment in certain business fields and/or in certain regions;
  3. reduction of corporate income tax;
  4. reduction of corporate income tax and income tax facilities for investment in certain business fields and/or in certain areas in SEZs;
  5. reduction in gross income from certain research and development activities in Indonesia;
  6. gross income for the implementation of work practices, internship and / or learning in the context of coaching and developing human resources based on certain competencies; and
  7. a reduction in net income from new investment or business expansion in certain business fields that are labor-intensive industries.

The documents that must be owned by PMA in obtaining an Investment Facility are:

  1. NIB; 
  2. Standard Certificate; and/or
  3. Permit.

The brief description above is an overview of the Investment Facility Obtained by Foreign Investors. If you are interested in knowing more about it, Suria Nataadmadja & Associates Law Office can help you.