TO leg up FDI inflows in the country, the Indonesian Finance Minister, Mr Agus Martowardojo, has announced major tax holidays to large global investors. While addressing the mediapersons the Minister said that to avail such benefits, an investor needs to invest at least 1 trillion Indonesian rupiah (USD 117 million). The tax holiday would last at least five years from the time the project begins commercial operations.

Priority will be given to infrastructure projects in telecommunication equipment production, resource extraction and refinement, renewable energy technology and industrial machinery production, he added.

The government will also expand the business areas eligible for tax allowances. To qualify for a tax allowance, a company must operate in a high priority industry on a national scale, and have a minimum investment value of IDR 50bn with a workforce of at least 300 people, or a minimum investment of IDR100bn with a workforce of at least 100 people, said the Finance Minister.