On April 2015, Indonesia government releases a revised regulation of income tax allowance facility by Government Regulation (PP) No. 18 / 2015 about Income Tax Allowance Facility for Investment in Certain Business Fields and/or Regions and effectively applied on May 2015. This regulation revised the previous Government Regulation No. 52 / 2011 about the similar subjects.


By this regulation, Indonesia government shows its commitment to accelerate investment for economic growth and equitable development. This article provides a summary of that regulation and full regulation file that can be downloaded if you need to learn it more.


Regarding purpose of this regulation for investment acceleration, this tax allowance can be applied by Corporate Taxpayer who establishing new investment or expanding the current business in Indonesia. Certain business fields those are covered in this regulation include of the following business fields:

  1. Food and beverage
  2. Petrochemical (such as crude palm oil and crude palm kernel oil processing)
  3. Textile
  4. Coal mining and natural oil processing
  5. Basic mining industry
  6. Renewal energy power plant
  7. Pharmaceutical (modern and traditional) industry
  8. Agriculture
  9. Marine and fishing industry
  10. Livestock
  11. Forestry and
  12. Tourism


Specifically for marine sector, certain supporting business fields for marine industries also included in this regulation, such as shipyard and seaport industry; consist of shipping manufacturing, shipping equipment, shipping supplies and spare parts, and cargo loading and handling services.


Taxpayer can afford the tax allowance facilities in form of:

  1. Taxable income deduction for 6 years since production started commercially
  2. Accelerated depreciation and amortization
  3. Income tax rate for dividend paid to Foreign Taxpayer is 10%, or lower rate if there is a tax treaty between Indonesia and the taxpayer country, and
  4. Fiscal loss can be compensated more than 5 years, and maximum is 10 years.


Full text of PP No. 18 / 2015 and related regulations from Indonesia Investment Coordinating Board (BKPM) and Ministry of Finance can be downloaded by clicking the following link. For more information and explanation about the regulation and application at business practices, please get in touch with our tax specialists at

Perka BKPM No. 8 Year 2015.pdf

PMK No. 89 Year 2015.pdf

PP No.18 Tahun 2015.pdf