Jakarta: The Indonesian Filament Fibre and Yarn Producers Association (APSBFI) has said that market certainty is needed to boost investment in the industry.
"We are still afraid to increase our capacity. We are waiting for market certainty," he remarked.
The Government Regulation Number 45 of 2019 amends Government Regulation Number 94 of 2010 on Calculation of Taxable Income and Repayment of Income Taxes in the Current Year. It grants 200 percent tax deduction to businesses and industries which provide workplace learning and training.
According to Article 29B of the new regulation, domestic taxpayers who organize working programs, internship and/or education aimed at fostering and developing certain competency-based human resources may be given a deduction in gross income of no more than 200% percent of the total costs incurred.
For domestic corporate taxpayers who conduct certain research and development (R&D) in Indonesia, a deduction in gross income may be given of no more than 300 percent of the total costs incurred which are charged in a certain period of time.
"Domestic market is bombarded with imported products. It cannot accommodate local products," APSBFI executive board member Prama Yudha Amdan said here on Wednesday.
Indonesia's trade balance recorded a surplus of USD0.2 billion in June 2019. It was mainly influenced by seasonal factors.
According to the Central Statictics Agency (BPS), the oil and gas sector still recorded a trade deficit of USD966.8 million in June 2019. In the meantime, the non-oil and gas sector managed to record a trade surplus of 1.16 billion last month.
Cumulatively, the oil and gas sector booked a trade deficit of USD4.78 billion in the first semester of 2019. Meanwhile, the non-oil and gas sector posted a trade surplus of USD2.85 billion last semester.