INDUSTRY.co.id - Jakarta, Minister of Industry, Airlangga Hartarto said the Ministry of Industry is proposing to provide fiscal incentives for export-oriented labor intensive sectors in order to boost national industrial competitiveness and productivity and employment.

"We are discussing it with the Ministry of Finance, that the provision of tax allowance facilities is no longer based on the amount of investment, but labor," Airlangga Hartarto said in Jakarta (25/09/2017).

Minister of Industry believes that in addition to encouraging job creation, the implementation of taxation fiscal facilities is also aimed to increase investment in strategic industrial sector. "We hope that there is a tax break, it can be used by the company for reinvestment," he said.

Airlangga said that export-oriented labor-intensive industries are being boosted by their performance, including textile and textile products (TPT), footwear, fish and seaweed processing industries, miscellaneous industries (children's toys, educational and sport utensils, optics, musical instruments), pharmaceutical industry, cosmetics and traditional medicine, as well as creative industries (craft, fashion, jewelry).

Furthermore, the rubber goods industry (motor vehicle tires and aircraft tire rethreading), electronics and telematics industries (multimedia, software), wood and rattan furniture industries, and food and beverage industries (CPO derivatives, processed coffee, cocoa).

Taxes based on the manufacturing industry, he added, are transparent so that no company can play with fiscal policy. Known, until June 2017, the investment value of industrial sector for Foreign Investment (PMA) amounted to 7.06 billion US dollars and Domestic Investment (PMDN) of Rp52, 11 trillion. The figure includes 8,421 projects spread across Indonesia.

To date, the national manufacturing industry has shown a positive performance. Based on data from the United Nations Industrial Development Organization (UNIDO), Indonesia was ranked 9th in the world for Manufacturing Value Added or up from the previous year rank at 10th position.

The 9th rank is parallel to Brazil and England, even higher than Russia, Australia, and the country
Other ASEAN. Therefore, the Ministry of Industry continues to drive the industry downstream to increase the value
added domestically.