No VAT for all processing industry for export purposes. If the manufactured products are sold in other non-bonded parts of Indonesia, they will be subjected to 10 % of VAT. However, effective from January 1, 2004, VAT and or Sales Tax on Luxury Goods shall be imposed on three products of Motor Vehicles, Cigarettes and other tobacco products and alcoholic drinks; and effective March 1, 2004, VAT and Sales Tax on Luxury Goods shall be imposed on all kinds of electronic goods using batteries or electricity.

GSP (Generalized System of Preferences).

Investment Allowance with reduction of income tax for certain industries with various incentives in reduction in calculation of net income, accelerated depreciation, compensation for losses, and lower tax rate considering Double Taxation Avoidance Agreement