Senior economic ministers suggested various forms of incentives to bolster the development of the agribusiness sector in the country particularly to lure investors to the planned food estate projects.
Speaking at the Jakarta Food Security Summit on Tuesday, Minister of Industry MS Hidayat said that he would propose a 10-year tax holiday for investors in food estate projects as they are located in remote regions with minimum or absence of infrastructure facilities.
Hidayat added that other forms of incentives would also be provided to the investors to build the necessary infrastructure facilities such as roads, electricity, and ports.
Minister of Trade Gita Wirjawan said that he supported proposal for tax incentive facility to lure investors to bolster the production of key food commodities in the country and put an end to dependency on import.
But he acknowledged that such proposal might not be welcomed by the Ministry of Finance.
Meanwhile, the Indonesian Chamber of Commerce and Industry announced that it would launch the Palapa Fund to help provide financing for small-scale players in the agribusiness sector. (rei)
