Indonesia to provide incentives for export-oriented investors

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In a bid to further control capital outflow out of the country, Indonesia would issue a policy that provides incentives for investors whose products are designated for export, a minister said here on Tuesday.

“The (would-be implemented) policy was aimed at encouraging investors to re-invest their profits here, not bringing it to countries elsewhere. Let’s say if the tax now set at 20 percent, it would eventually be reduced to approximately zero percent,” Indonesian Finance Minister Chatib Basri said.

The minister added that the policy is now still being processed by fiscal policy section in his ministry. It can be implemented within the next two months.

He said that such a policy would also be expected to help improve the country’s exchange value against U.S. dollars. The exchange value of Indonesia’s currency Rupiah now has dropped to above 12,000 per one U.S. dollars from 9,500 set in the state budget.

Indonesia recorded total new investments at 398.6 trillion rupiah (about 33 billion U.S. dollars) last year, surpassing the target initially set at 390 trillion rupiah (about 32.9 billion U. S. dollars).

Of that figure, foreign investments contributed the most at 270. 4 trillion rupiah (about 22.4 billion U.S. dollars), followed by domestic ones at 127.6 trillion rupiah (about 10.5 billion U.S. dollars).

Indonesia’s Investment Coordination Agency (BKPM) has increased investment target for this year up to 506 trillion rupiah (about 42 billion U.S. dollars).

Source : Xinhua | February 4, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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