Analysis of income tax incentives in Indonesia

Income tax incentives is one of policy could be used to facilitate investment in specific industry. A change of current tax structure in various method is significant determinant of economic activity. In this research, we discuss income tax incentives in Indonesia with focus on three industry: textile industry, renewable energy industry and creative industry. To compare income tax incentives given in Indonesia, we use two other country as a comparison. From our study, we found that other country give more attractive income tax incentives package which maximize shareholder’s value that might be considered to be implemented if applicable in Indonesia by government and tax authority.