Indonesian Investment Minister Bahlil Lahadalia confirmed that his government will keep granting tax holidays to attract foreign investors so long as the global minimum tax (GMT) policy is not yet rendered, local media has reported.

Illustrative image (Photo: https://investindonesia.co.id/)

Addressing BNI Investor Daily Summit 2023 in Jakarta on October 25, Bahlil stated that tax exemptions are very important and his country will still continue its tax exemption policies.

The GMT rules serve as a “play thing” for developed countries and are a strategy to attract investment to these countries. So, the implementation is not a fair game between developed and developing countries, he noted.

Previously, Bahlil had requested that the GMT rule of 15 % be reviewed because if it is implemented too early, it will disrupt the downstream programme promoted by the Indonesian government. 

Meanwhile, Finance Minister Sri Mulyani said many countries were preparing to implement the GMT agreement. However, Indonesia still applies fiscal incentives to boost investment competitiveness.

This will be one of the global focuses, which is now gradually implementing global tax rules to reduce various tax holidays in order to prevent the race to the bottom, Sri said in a joint meeting with the House of Representatives (DPR) Commission IX recently.

Source: VNA