JAKARTA: Government will complete the revision of Government Regulation No 62/2008 and Financial Ministry Derivatives Regulation of Government Regulation No 94/2010 in the same time in August to boost the investment realization.Investment Coordinating Board Head Gita Wirjawan said government made fiscal attitudes to ensure the investment commitment are actually realized by revising Government Regulation No 62/2008 on Income Tax Facility for Investment in Certain Business and/or in Certain Areas.Besides that, it will also revise Financial Ministry Derivatives Regulation of Government Regulation No 94/2010 on Calculation of Taxed Income and Income Tax Settlement in the Recurring Year.The last week meeting concluded that fiscal attitude regulation will be completed in the same time on August. Thus, the completion of income tax facility revision will be faster than governments initial target at the end of this year.The meeting result was quite positive. All recommendations from Industrial Ministry that recommend 38 types of certain business to receive facility based on revised income tax facility regulation were accepted. The completion of all regulations can be conducted in the same time in August, he said in World Economic Forum, yesterday.Gita said the government is still formulating the requirement to receive such facility including investors minimum value that must be invested. Minimum investment for income tax facility regulation is probably around US$100 millionUS$150 million.Minimum investment for tax holiday is around US$500 million or lower than previously at US$1 billion as requested by one of the ministry, he said.Non-discriminativeThe government will not act discriminatively against local and foreign investor as long as its spirit commensurate with governments medium and long term goals, i.e. increasing employment, developing downstream industry and improving the economy particularly outside Java Island.The tax holiday will be non-discriminative against the investor as long as its in large scale, pioneer, innovative and to create employment. We will provide such incentive, he said.However, government will not be too liberal in granting such incentive as Vietnam did. The incentive is given based on a large market consideration, infrastructure availability and other factors.We will not too liberal. Vietnam conducted incentive sales because it has smaller market and inadequate infrastructure unlike Indonesia. It seems unwise if it over our scale. However, such attitude is important if not the investor will invest to other country, he said.Investor needs fiscal incentive to deal with tight competition not only in domestic market but also export, Sinar Mas Group Managing Director Gandi Sulistiyanto said.The incentive is not a subsidy and in long term it will probably create larger value from facility value given by government through such incentive. (t06/msw)

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