Minister issues new regulation on tax facility for investors

By Romel S. Gurky

Minister of Energy and Mineral Resources Sudirman Said has issued a new Minister Regulation No 16/2015 on the criteria and/ requirements to obtain income tax facility for investment in certain areas of the energy and mineral resources sector, and/or in certain regions.

According to copy of the regulation obtained Saturday, domestic companies making investment for new project or expansion are eligible to the tax facility as long as meeting the following criteria.
a. Making huge investment or investment for export;
b. Absorb huge number of workers; or
c. Utilize large domestic content.

According to the regulation, which was signed by the minister on May 13, 2015, companies operating in the oil and gas, mineral and coal, electricity, and new and renewable energy, and energy conservation sector can apply for the tax facility with the Investment Coordinating Board (BKPM).

The respective director general at the ministry will then make verification process whether the applicants have met the required criteria.

Editing by Reiner Simanjuntak