Indonesia announces tax break for PPE
The Indonesian Government is helping out the manufacturers
of personal protective equipment (PPE) and household
antiseptic products as the number of cases of COVID-19 is on
the rise. The country reported 1,000+ cases on Friday,
taking the total up to 43,000+ cases and 2,373 deaths.
In an announcement, the Government declared a tax break for
all manufacturers of PPE including N95 masks and gloves
along with the makers of antiseptic hand sanitisers,
ventilators, reagents for diagnostic tests of COVID-19 and
According to the country’s tax department’s website,
manufacturers will be able to offset 30 per cent of their
production costs for the months of March through September
2020 against their taxable income.
Earlier in March, the Indonesian Government had imposed a
ban on exporting of 10 commodities, including antiseptics,
PPE and raw materials to make surgical masks, in order to
fight any paucity of necessity equipments in the country.
However, they received a lot of backlash as the export ban
would not only block Indonesia’s potential for further
growth but also negatively affect Indonesia’s trade
partners’ capacity to produce raw materials.
The decision was relaxed into export licensing quickly after
a G20 meeting in late March regarding the decision to
support trade and global supply chains.