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Depreciating Rupiah Brings Potential Benefits to Manufacturing, Service Sector Industries: Minister

From The Jakarta Post
March 8, 2015

Manufacturing and service-sector industries could take advantage of the current fluctuation of the rupiah exchange rate that had continued to weaken against the US dollar, predicted Minister Bambang Brodjonegoro. Additionally, major players in the manufacture industry, such as Australia and Japan, were recently facing difficulties in developing their manufacturing sectors competitively.

Bambang said a number of incentive was ready to be given by the government to manufacturing industry players, namely tax allowances and tax holidays. In a newly revised government regulation, 95 percent of tax allowances and tax holidays would be allocated for the manufacturing industry.

By giving incentives to and promoting potentials of the sectors, it was hoped that Indonesia’s current account that had not yet run optimally and still experienced a deficit could improve and help the strengthening of economic fundamentals.

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