Page 4 - Newsletter (Update on New Tax Holiday Regime in Indonesia)

DDTC Tax Newsletter 03 I Apr 2018 Page 4 of 5

Figure 2 - Guidelines for Applying Tax Holiday Based on PMK 35/2018

For 17 Sectors Mentioned as Sectors Outside the Scope
Pioneer Industry in Article 3 (Non - 17 Sectors)
Paragraph (2)

Requirement(s): Requirement(s):
• meet the criteria based on • meet the criteria based on Article 3
Article 3 Paragrapah (1) Paragraph (1)
• state their business as Pioneer
Industry

Full document submission to One Stop Service Center of
Indonesia Investment Coordinating Board (PTSP BKPM) Full document submission to One Stop Service Center of
Indonesia Investment Coordinating Board (PTSP BKPM)
*will be regulated further by the Regulation of the Head
of BKPM/ PerKa BKPM *will be regulated further by the Regulation of the Head
of BKPM/ PerKa BKPM

Interdiscussion between MoF and related
Ministry(ies) coordinated by BKPM to determine
the compatibility of main business activity to
Pioneer Industry criteria

Recommendation by the Head of BKPM
Proposal Accepted Proposal Declined

Decision by Minister of Finance:
5 working days upon receiving
complete document(s) from BKPM Recommendation by the Head of BKPM

Decision by Minister of Finance:
5 working days upon receiving
complete document(s) from BKPM

If granted Tax Holiday

Field Inspection after the Commencement of
Commercial Production:
to determine the time period of Tax Holiday
facility

Monitoring and Evaluation:
Annual Report to Directorate General of Tax
• Report on the realisation of new capital investment
after the commencement of commercial operations;
• Report on the realisation of production