REPUBLIKA.CO.ID, JAKARTA - In another effort to attract investment in the industrial sector the Finance Ministry had issued a regulation on tax holiday. Under the regulation, tax holiday will be granted to investors who invest at least 1 trillion IDR in Indonesia and put at least 10 percent of the overall planned investment in the national banking industry, the head of the ministry`s center for industrial policy and quality studies, Arryanto Sagala said on Monday.

The investors that were entitled to receive tax holiday were those engaged in the base metal industry, oil refinery, machinery industry, renewable energy and communication equipment industry, he said. He made it clear that the tax holiday would be given for five to 10 years after applicants had realized their entire investment plans and started commercial production.

In addition, the government will also provide 50 percent tax reduction for two years after the tax holiday period has expired. "Investors can apply for the facilities to the industry minister and the head of the Investment Coordinating Board (BKPM)," he said.

It took 14 working days for the investors to apply for tax holiday, he pointed out. The Capital Investment Coordinating Board (BKPM) has set itself the target of attracting 383 trillion IDR investment in 2013 and 500 trillion IDR investment in 2014. The agency has projected investment to reach 283 trillion IDR at the end of this year, up by 15 percent from last year`s.

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