Tax Director: Investment Ecosystem Remains Costly Despite Tax

Tax Director Bimo Wijayanto said on Thursday, 11 December 2025, that Indonesia’s investment climate remains costly. He pointed to complex bureaucracy and high operating expenses as barriers despite the existence of a tax holiday.

The government has offered a tax holiday of up to 20 years for extractive industries, including downstream nickel processing, to attract high‑tech investors. Bimo noted, however, that lengthy licensing procedures and bureaucratic fees still raise the overall cost of projects, limiting the value‑added potential of critical mineral sectors.

To improve the investment environment, the tax authority and the PKH task force are strengthening licensing reforms and cracking down on corrupt practices. These actions aim to lower cost burdens and provide greater legal certainty for businesses. A more efficient regime could draw additional foreign investment into strategic sectors.