BKPM and Finance Ministry Discuss Tax Impact on Production Costs

Jakarta, 31 October 2025 – The Ministry of Investment and Economic Development (BKPM) and the Ministry of Finance are discussing ways to lower high production costs caused by layered taxes, Deputy Minister Todotua Pasaribu said. The coordination aims to create a more competitive investment climate.

Pasaribu explained that taxes are applied at every stage of the value chain—from mining to final product sales—raising the overall cost. He cited the tin industry, where Indonesian ore faces taxes during extraction, processing, exchange‑trading, and sale to solder manufacturers, while imported Malaysian products can be priced lower.

BKPM has proposed fiscal simplification, supply‑chain improvements, and more efficient industrial zone development to reduce cost burdens for investors and local producers. Implementation of these measures is expected to enhance the competitiveness of domestically produced goods in both local and export markets.