Government Reviews Danantara's Tax Incentive Request

Conditional Support for Business Development

The Indonesian government has announced it will consider Danantara's request for tax incentives while ensuring compliance with existing regulations, according to Purbaya Yudhi Sadewa, Deputy Finance Minister. Danantara's CEO, Rosan Roeslani, had requested tax relief for several state-owned enterprises under its management.

Limitations on Tax Relief

Purbaya emphasized that while the government is open to supporting Danantara's business development, it cannot waive past tax obligations, particularly those accrued before 2023. This stance indicates a cautious approach to fiscal support, balancing business growth with regulatory compliance.

Implications for State-Owned Enterprises

The decision reflects the government's careful consideration of providing financial support to state-owned enterprises while maintaining fiscal discipline. Danantara's request highlights the challenges faced by state-owned entities in managing their financial obligations and the need for strategic fiscal support.