Based on Regulation of the Minister of Finance No. 35/PMK.010/2018 regarding the Provision of Corporate Income Tax Deduction Facility, there are 17 industries which receive tax incentives. However, the pulp and paper industry is not included in the 17 industries although such industry has a great potential for investment and supports other industries such as the textile and textile product industry.
Therefore, the Minister of Industry, Airlangga Hartarto, requests the Ministry of Finance and Coordinating Ministry for Economic Affairs to consider the provision of tax incentive for the pulp and paper industry.
The industry also faces some obstacles such as the limited availability of raw materials thus relying on the import of recycled paper with appropriate quality which requires a relatively high verification cost. In addition, some other factors which also hamper the development of such industry are high energy price and logistic cost.
Source : https://legalcentric.com/content/view/132390