PT QMB New Energy Material, a subsidiary of Chinese renewable resources company GEM Co., Ltd., invested in Morowali, Indonesia, and received a 10-year corporate income tax (PPh) exemption plus a 50% PPh reduction for 2 years. The company is jointly held by several well-known enterprises and has also partnered with the Indonesian Institute of Technology for nickel research and development. Due to the tax exemption period, the company did not utilize the super tax deduction policy. Additionally, GEM plans to build an international green industrial park in Morowali, with an estimated investment of US$8 billion. The Vice Chairman of the Investment Coordinating Board stated that the government attracts foreign investment by offering various incentives such as tax holidays and tax allowances to enhance national competitiveness and encourage companies to conduct training and R&D. Tax holidays provide 100% corporate income tax relief for 5-20 years for new investments of at least IDR 50 billion (approximately US$335,000), with some companies eligible for an additional 50% reduction. For investments between IDR 10-50 billion, a 50% corporate income tax reduction for 5 years plus an additional 25% reduction for 2 years is offered. Tax allowances include a gross income reduction of up to 30% of the original value of fixed assets for specific industries or regions, accelerated depreciation and amortization, reduction of dividend income tax to 10% or lower, and extended loss carryforward periods. Furthermore, companies using a certain percentage of local machinery may enjoy duty-free imports of machinery, educational enterprises can benefit from up to 200% super tax deductions on educational activity costs, and labor-intensive industries and R&D activities also have corresponding tax incentives. Indonesia also has 25 special economic zones offering additional benefits such as import and export duty exemptions for investors. According to the Ministry of Finance's 2023 tax report, the government has provided IDR 21 billion in tax allowances for investments in specific sectors or regions and IDR 3.84 trillion in tax holidays for pioneer industries.
PT QMB New Energy Material, a subsidiary of Chinese renewable resources company GEM Co., Ltd., invested in Morowali, Indonesia, and received a 10-year corporate income tax (PPh) exemption plus a 50% PPh reduction for 2 years. The company is jointly held by several well-known enterprises and has also partnered with the Indonesian Institute of Technology for nickel research and development. Due to the tax exemption period, the company did not utilize the super tax deduction policy. Additionally, GEM plans to build an international green industrial park in Morowali, with an estimated investment of US$8 billion. The Vice Chairman of the Investment Coordinating Board stated that the government attracts foreign investment by offering various incentives such as tax holidays and tax allowances to enhance national competitiveness and encourage companies to conduct training and R&D. Tax holidays provide 100% corporate income tax relief for 5-20 years for new investments of at least IDR 50 billion (approximately US$335,000), with some companies eligible for an additional 50% reduction. For investments between IDR 10-50 billion, a 50% corporate income tax reduction for 5 years plus an additional 25% reduction for 2 years is offered. Tax allowances include a gross income reduction of up to 30% of the original value of fixed assets for specific industries or regions, accelerated depreciation and amortization, reduction of dividend income tax to 10% or lower, and extended loss carryforward periods. Furthermore, companies using a certain percentage of local machinery may enjoy duty-free imports of machinery, educational enterprises can benefit from up to 200% super tax deductions on educational activity costs, and labor-intensive industries and R&D activities also have corresponding tax incentives. Indonesia also has 25 special economic zones offering additional benefits such as import and export duty exemptions for investors. According to the Ministry of Finance's 2023 tax report, the government has provided IDR 21 billion in tax allowances for investments in specific sectors or regions and IDR 3.84 trillion in tax holidays for pioneer industries.