Jakarta: Manpower Minister Hanif Dhakiri believes that Government Regulation Number 45 of 2019 can help improve the quality of labors.
The new regulation 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.
"This policy is needed to significantly improve the skills of our workers. It also can help fulfill demand for skilled labors. In addition, it will tremendously improve our competitiveness. I believe all stakeholders will warmly welcome this policy," Hanif said here on Wednesday.
The new regulation was signed by President Joko 'Jokowi' Widodo on June 25. It came into effect on the date of its promulgation by Minister of Law and Human Rights Yasonna H. Laoly on June 26.
This policy is aimed at providing more jobs and reducing unemployment rate. It is the follow-up of coordination of Coordinating Ministry for the Economy with related ministries/agencies, particularly Ministry of Finance, Ministry of Industry, Ministry of Manpower, Ministry of Education and Culture, and Ministry of Research, Technology and Higher Education.