Abstract
Tax holiday is a facility given by the government to investors in Indonesia to attract foreign and local investors in Indonesia, especially in the industrial sector as well as to improve national economic growth. Purpose of this research is to analyze the tax holiday policy and how the impact on the investment in Indonesia. Data consists of primary and secondary data which are collected through interview, questionnaire and literature study. Respondents are Honam Petrochemical Corp, PT. Asahimas Chemical, PT. Nippon Shokubai, PT Petrokimia Butadiene Indonesia and PT. Ebel Industries. The results showed that all companies meet the criteria to obtain the facility of tax holiday. Giving tax holiday facility is very influential against the growth of industry in Indonesia especially for petrochemical industries that has an important role in the economic growth.
Highlights
IntroductionThe vision of the national industry development as listed in the Peraturan Presiden Nomor 28 Tahun 2008 about National Industry Policy stated that Indonesia has become Strong Industrial Country on 2025, with the vision between on 2020 as a new advanced industrial country, because in accordance to the declaration of Bogor 1995 between the heads of the APEC countries on the year when liberalization in APEC countries should have been realized.As a new advanced industrial country, Indonesian industry sector must be able to meet some basic criterias among others (www.kemenperin.go.id): 1) Obtaining the role and high contribution to the national economy, 2) Small and Medium Enterprises (SMEs) has the ability to balance with the large industries, 3) Obtaining a strong industry structure (a complete and detailed Industry Tree ), 4) Obtaining an advanced technology which has been at the forefront of the development and the creation of the market, 5) Obtaining a tough industry service supporting the international competitive power industry, 6) Obtaining the competitiveness which is able to deal with the full liberalisation with APEC countries.It is expected that 2020, non-oil and gas industry contribution to the GDP will be able to reach 30%, where small industries (SI) plus medium industries (MI)will contribute as well as or close to the large industries (LI) contribution
As a new advanced industrial country, Indonesian industry sector must be able to meet some basic criterias among others: 1) Obtaining the role and high contribution to the national economy, 2) Small and Medium Enterprises (SMEs) has the ability to balance with the large industries, 3) Obtaining a strong industry structure, 4) Obtaining an advanced technology which has been at the forefront of the development and the creation of the market, 5) Obtaining a tough industry service supporting the international competitive power industry, 6) Obtaining the competitiveness which is able to deal with the full liberalisation with APEC countries
Based on the results of research, it showed that petrochemical industries have already met the requirements set out to obtain the tax holiday facility given by the government of Indonesia
Summary
The vision of the national industry development as listed in the Peraturan Presiden Nomor 28 Tahun 2008 about National Industry Policy stated that Indonesia has become Strong Industrial Country on 2025, with the vision between on 2020 as a new advanced industrial country, because in accordance to the declaration of Bogor 1995 between the heads of the APEC countries on the year when liberalization in APEC countries should have been realized.As a new advanced industrial country, Indonesian industry sector must be able to meet some basic criterias among others (www.kemenperin.go.id): 1) Obtaining the role and high contribution to the national economy, 2) Small and Medium Enterprises (SMEs) has the ability to balance with the large industries, 3) Obtaining a strong industry structure (a complete and detailed Industry Tree ), 4) Obtaining an advanced technology which has been at the forefront of the development and the creation of the market, 5) Obtaining a tough industry service supporting the international competitive power industry, 6) Obtaining the competitiveness which is able to deal with the full liberalisation with APEC countries.It is expected that 2020, non-oil and gas industry contribution to the GDP will be able to reach 30%, where small industries (SI) plus medium industries (MI)will contribute as well as or close to the large industries (LI) contribution. As a new advanced industrial country, Indonesian industry sector must be able to meet some basic criterias among others (www.kemenperin.go.id): 1) Obtaining the role and high contribution to the national economy, 2) Small and Medium Enterprises (SMEs) has the ability to balance with the large industries, 3) Obtaining a strong industry structure (a complete and detailed Industry Tree ), 4) Obtaining an advanced technology which has been at the forefront of the development and the creation of the market, 5) Obtaining a tough industry service supporting the international competitive power industry, 6) Obtaining the competitiveness which is able to deal with the full liberalisation with APEC countries. Foreign Investment is a capital investment activities to operate business in the territory of Republic of Indonesia that is done by foreign investors, both using foreign capital entirely or teaming up with investors (Anna & Suratman, 2009)
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