The Ministry of Finance plans to evaluate taxation incentives in order to encourage investment in the context of creating momentum towards economic growth. According to the Minister of Finance, Sri Mulyani Indrawati, there are several taxation incentives provided by the government such as tax holiday, tax allowance, et cetera. However, the use of those taxation incentives is still limited.
The evaluation of taxation incentives to be conducted by the Fiscal Policy Agency (BKF) is aimed at assessing the effectiveness of such taxation incentives. The government itself does not intend to provide taxation incentives carelessly because entrepreneurs make a decision based on the global economic condition, consumer trend, trade system, and licensing.
BKF is going to re-identify sectors which require taxation incentives to encourage the interest in investment.