Fiscal Incentives for Industrial-Zone Companies and Companies Located in Industrial Zones

The Ministry of Financehas issued Regulation No. 105/PMK.010/2016 of 2016 on Procedures for Granting Tax and Custom Facilities to Industrial Companies Located in Industrial Zones and Industrial-Zone Companies (“2016 Regulation”).
 
The 2016 Regulation implements Art 41 (4) of Government Regulation No. 142 of 2015 on Industrial Zones (“2015 Regulation”), which required further detail to be set out regarding the type of fiscal incentives which can be provided to industrial-zone companies and companies operating within industrial zones (together referred to as “Companies”).
 
Types of Incentives Based on WPI Categories
Companies are eligible to receive fiscal incentives in accordance with the type of Industrial Development Zone (Wilayah Pengembangan Industri – “WPI”)[1] that they are involved with, and these are categorized as follows:[2]