Umar Hadi, Indonesian Ambassador, Sends Love Call to Korean Companies... "Providing Tax Deductions and Other Tax Benefits"

Business Breakfast Meeting with Indonesian Ambassador to Korea
"Providing Incentives in Internship, Vocational Training, and R&D Areas"

[Image source=Yonhap News]

[Asia Economy Reporter Dongwoo Lee] Umar Hadi, Indonesian Ambassador to Korea, urged active investment and cooperation from Korean companies in sectors such as education, chemicals, agriculture, and tourism to create quality jobs in Indonesia.

Ambassador Hadi stated at a business breakfast meeting held on the morning of the 27th at the Federation of Korean Industries (FKI) building in Yeouido, "The Indonesian government will provide various tax benefits, including tax deductions, to facilitate smooth investment by foreign companies."

He emphasized, "The Indonesian government is preparing an omnibus law to unify regulations and provisions related to incentives and taxation for foreign companies to create jobs. We aim to offer 200% tax benefits and 300% incentives through tax deductions to research and development (R&D) companies in specific competency areas such as internships and vocational training."

Specifically, starting this year, the second term government of President Joko Widodo plans to create a favorable environment for businesses and promote foreign investment by reducing corporate tax rates to 22% by 2022 and to the 20% range by 2023.

Ambassador Hadi also pointed out that the COVID-19 crisis presents excellent opportunities for Korean companies in Indonesia and requested active investment from companies in domestic medical equipment, pharmaceuticals, bio, automotive, vehicle parts, and tourism sectors.

Additionally, he expressed hope for active discussions on trade measures including ▲ Korea's advanced agricultural technology ▲ Indonesia's timber trading system ▲ establishment of schools for professional caregivers ▲ diversification of export-import items centered on coal and defense industries.

Regarding the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA), Ambassador Hadi said, "We have started translating the agreement into Korean and Indonesian and plan to sign it in June." CEPA is a trade agreement similar to a free trade agreement that includes not only the movement of goods and personnel between the two countries but also comprehensive exchanges and cooperation.

He concluded, "Korea and Indonesia share similar aspirations and ambitions for an open economy and democracy based on freedom and justice," adding, "For these main reasons, I believe the two countries are natural partners."

At the meeting, Kwon Tae-shin, Vice Chairman of the Federation of Korean Industries, requested that the Indonesian government expand opportunities for domestic companies related to smart cities, roads, and water resources to actively participate in the new administrative capital construction project worth 40 trillion won.

Attending the meeting were 24 representatives from related companies and institutions, including Vice Chairman Kwon, Hwang Soo, President of Iljin Electric, Heo Kyung-gu, President of Korea Overseas Infrastructure & Urban Development Corporation, Lotte Chemical, Daewoo Shipbuilding & Marine Engineering, Hanwha Corporation, Doosan Heavy Industries & Construction, Hyundai Motor Company, POSCO, KB Kookmin Bank, Woori Bank, Chong Kun Dang Pharmaceutical, Daesang, GS Construction, Ssangyong Construction, Korea Overseas Construction Association, law firm Yulchon, and Samjong Accounting Corporation.

This content was produced with the assistance of AI translation services.