The Ministry of Finance (Kemenkeu) is preparing which sectors will receive tax incentives next year. This incentive is expected to be able to encourage growth and facilitate investment in the sector. Indonesia Strategic and Economic Action Institution Economic Observer, Ronny P Sasmita said, seeing the importance of investment contribution to economic growth, tax incentives must be prioritized on new investment or investment expansion, especially in the real sector. In addition, tax incentives need to be given to the consumer goods sector related to basic commodities. This aims to boost household consumption next year.

Not to forget, incentives can also be prioritized for sectors that add value or downstream domestically, especially for natural resource and agricultural commodities.

"Incentives can be added if the downstream priority is directed at the export market," said Ronny, Monday (21/8).

Ronny also advised the government to provide tax incentives to accelerate the energy transition process and reduce carbon emissions, aka the green sector. It's just that the incentives must be carried out in a measurable manner, so as not to cause disruption to the Indonesian automotive sector.

"So that incentives are not used as reading material by a handful of entrepreneurs who are also masquerading as the authorities to monopolize this new sector," he said.

In line with this, Bhima Yudhistira, Director of the Center for Economics and Law Studies (Celios), also suggested several priority sectors that should receive tax incentives next year. One of them is the downstream agriculture and fisheries based sector which has added value.

"This aims to increase labor absorption, increase export value, and maintain food price stability amidst weather anomalies," said Bhima, Monday (21/8).

In addition, the labor-intensive industrial sector, such as the textile and footwear industries, still needs government support through reductions in import duties for raw materials, machinery and various fiscal incentives including reductions in employee income tax (PPh).

Bhima also suggested that the creative and digital economy sectors get tax incentives next year because they are able to absorb foreign exchange and encourage local products to enter the digital ecosystem to a greater extent.