The government has drafted a regulation which will provide for super deduction tax for a while, but the regulation has not been issued until now. According to plan, the government will give an income tax deduction incentive of 200%-300% of the cost incurred by business players involved in the activities of vocational education as well as research and development to create an innovation.
According to the Minister of Industry, Airlangga Hartarto, some time ago, the regulation will be issued in the first semester of 2019. The government’s objective in issuing the regulation is to improve the quality of human resources in the future and attract private parties’ interest in assisting in the effort.
The Ministry of Industry itself has proposed 36 competencies in the draft regulation, among others industrial electronics, machinery, casting, welding, industrial chemistry, audio video repair and maintenance, manufacturing of furniture products, design of furniture products, ship construction, automotive design and repair, and automotive body repair.