Indonesia’s tax policies expected to attract more Japanese investors

Jakarta (Indonesia Window) – The Indonesian government reiterates its seriousness in creating a conducive investment climate to attract more foreign investors, among others through open, transparent and fair tax policies.

“For this reason, the Indonesian Embassy in Tokyo has held the Indonesia-Japan Virtual Tax Consultation Clinic as a forum for communications and discussions between Japanese business circles and the Indonesian government regarding tax issues,” Indonesian Ambassador to Japan Heri Akhmadi remarked when opening the event on Tuesday (Jan. 19).

The consultation forum is a room for Japanese companies that have businesses in Indonesia.

As a strategic partner, Indonesia always strives to maintain relations between the two countries. The Indonesian government continues to issue policies to facilitate taxation, including implementing tax holidays and super deduction facilities for investors who carry out vocational trainings.

The super deduction tax was issued by the Indonesian government in July 2019. This policy is expected to make domestic corporate taxpayers (industries) to hire more workers, and invest in the development of human resources.

Investors are also facilitated in the process of obtaining these fiscal facilities and the benefits can be received immediately as they are making investments.

Meanwhile, Director General of Taxes Suryo Utomo said the Indonesian Directorate General of Taxes and the Japanese National Tax Agency routinely hold Mutual Agreement Procedures (MAP) meetings twice a year to negotiate the settlement of tax disputes faced by the two tax authorities.

The Indonesian Directorate General of Taxes is committed to and continues making efforts to reduce the risk of disputes from the upstream side by improving the quality of supervision and inspection in a more systematic and measurable manner using sophisticated data management instruments.

Indonesia and Japan have established bilateral relations for more than 60 years.

The bilateral relationship is reflected in various forms of cooperation in the economic, political, socio-cultural and other fields.

Trade and investment activities between Indonesia and Japan are always maintained from year to year.

For Japan, Indonesia is an investment destination country with high market growth potential, with around 1,700 Japanese companies currently investing in the archipelagic country.

The consultation clinic received positive responses from 148 participants consisting of Japanese companies both in Indonesia and Japan.

Reporting by Indonesia Window