JAKARTA: Government considers granting special incentives, such as lower income tax and tax holiday for infrastructure projects.In order to implement the Indonesia Economic Development Acceleration and Expansion Program (MP3EI), particularly in infrastructure sector, government needs to provide significant support for private investment, said Deputy Coordinating Minister of Economy for Infrastructure and Region Development affair, Lucky Eko Wuryanto.In order to attract investor, government needs to improve the investment climate particularly by fixing any supporting regulations and providing fiscal incentive.If there have already been pioneer criteria, they can get incentives for infrastructure development through tax, tax holiday or tax allowance since infrastructure sector is yet to be included in Governmental Decree No. 62/2008, he said yesterday.Government is currently revising Governmental Decree No.62.2008 on Income Tax Facility for Capital Investment in Particular Sectors or Particular Areas. Of 38 sectors receiving tax incentive, around five sectors have asked 118 other sectors to receive the similar incentives.Besides, government is also formulating regulations of Finance Minister on tax income payment delay for certain period of time or widely known as tax holiday for large scale investors in pioneer industries.Such finance minister decree is a derivative regulation of Governmental Decree No. 94/2010 on Tax Income Calculation and Tax income Payment in the Current Year.To attract more investors, government has prepared an incentive in the form of tax holiday with the limitation of US$500 million, said Head of Indonesias Investment Board Gita Wirjawan. Such limit is lower compared to the previous figure at US$1 billion.Deputy Head of Indonesias Trade Chamber and Industry on Infrastructure, Construction, and Property urges government to grant tax holiday facility merely to accelerate the realization of 2014 development target.Only investment in strategic infrastructure sector that may accelerate domestic economic development, Lucky added. Such sector includes investment on large port and power generator in eastern Indonesia. (t02/msw)

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