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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Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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