Indonesia to Further Extend Tax Breaks Due to COVID-19 Pandemic

Following the tax breaks announced in March 2020 for 19 subsectors in the manufacturing industry, the Government of Indonesia is considering a further extension of its tax breaks to include all sectors, in order to counter the economic impact of the COVID-19 pandemic.

According to Indonesia’s Finance Minister Sri Mulyani Indrawati, these tax breaks would take effect for six months with the total amount of the deducted taxes reaching USD 2.3 billion.

Indrawati also stated that the Government would soon revise a ministerial regulation to allow the tax deduction facility to be expanded further.

She added that the Government expects to finaliz...