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Manufacturers running vocational schools eligible for 'superdeduction tax'

  • By Admin
  • 14 May 2019

Industry Minister Airlangga Hartanto has said that a draft regulation concerning the so-called superdeduction tax will be implemented for manufacturing companies that run vocational schools teaching 36 skills.

The superdeduction tax is a fiscal incentive involving a 200 percent tax allowance proposed by the ministry for such companies.

"We have listed 36 competencies in the draft. We will finalize the regulation with the Office of the Coordinating Minister for Economic Affairs," he said during the Indonesian Industrial Summit 2019 in Tangerang, Banten, on Monday, as quoted by

Airlangga said 16 vocational skills fell into the general category: industrial electronics, installation of electric power utilization, machinery, welding, casting, industrial mechanical maintenance, metal instrumentation and metal fabrication.

Also included in the category are process control expertise, mechanical control, industrial automation, mechatronics, industrial chemistry, chemical analysis, audio video repair and maintenance and heavy equipment maintenance and repair.

Airlangga said the other 20 skills were divided into five categories: automotive, furniture, shipbuilding, textile and garment and industrial logistics.

He said that in the automotive category, the fiscal incentive would be implemented for businesses that offered education programs on maintenance and repair of light vehicles, motorcycles, electronic design, repair of automotive bodies and manufacturing of automotive industry components.

He added that in the furniture category, the required competencies were product manufacturing and design.

Companies running education programs on shipbuilding design, ship construction, ship welding, ship electrics and ship machinery were also entitled to the incentive, he said.

Airlangga said the textile and garment category included programs on design, yarn manufacturing, fabric manufacturing, garment production and textile chemistry.

Lastly, in the industrial logistics category, the regulated competencies were warehousing logistics, transportation and warehouse management. (ars)