The Fiscal Policy Agency (BKF) of the Ministry of Finance (Kemenkeu) noted that the utilization of tax holiday incentives and tax allowances offered by the government in special economic zones (SEZs) turned out to be minimal. Referring to the 2021 Tax Expenditure Report document, the use of tax holiday incentives in KEK in 2021 is still recorded at zero rupiah. Also, from 2018 to Rp. 2020, the realization is still zero. Even for 2022, it is projected that the realization will also remain zero rupiah. Meanwhile with regard to tax allowances, BKF noted that the value of tax revenue that was not collected as a result of this incentive in 2021 was only IDR 11 billion, even in 2022 it is also projected to have the same value.
However, from 2018 to 2020, the value of tax revenue that is not collected as a result of these incentives is still zero rupiah.
Head of BKF Febrio Nathan Kacaribu said that currently there are many taxpayers who have received tax holiday and tax allowance facilities at KEK. It's just that, the impact on the value of tax spending is still nil, because the taxpayer receiving the incentive is still in the planning stage of investing in KEK.
"In the process, investors must realize their investment plans, so that later when the commercialization stage enters, they will begin to enjoy the tax holiday," said Febrio at the Press Conference on Our State Budget, quoted Monday (9/1).
Febrio said that currently many investors are finalizing their investment plans, so they can enjoy these two incentives after entering the commercialization stage.
Therefore, the government will continue to encourage these two incentives to support economic growth in the country.
"To encourage the growth of the manufacturing sector, and in the context of seeing economic growth in the pioneer sector, tax and non-tax support is needed," he said.
"Most of the investments that have received a tax holiday are still in the stage of finalizing their realization. The same thing has happened to the tax allowance facilities in SEZs," said Oka, Monday (9/1).
Quoting Kontan's previous news, Chair of the Economic Policy Analysis Committee of the Indonesian Employers' Association (Apindo) Ajib Hamdani also highlighted tax incentives in SEZs whose realization is still low. According to him, this is inseparable from the provision that the investment value is too large to obtain the facility.
What's more, the current global economy is still uncertain, so entrepreneurs will still wait and see and not dare to take risks.
"The investment value is too large. In the midst of this uncertain global economy, investors do not dare to take risks," said Ajib.