Peraturan Menteri Keuangan Nomor 130/PMK.010/2020 tentang Pemberian Fasilitas Pengurangan Pajak Penghasilan Badan

PMK 130/2020 governs Indonesia's Tax Holiday — the largest single corporate-income-tax incentive available to foreign investors. Eligible PMAs investing in one of 17 designated pioneer industries receive a 100% CIT exemption for 5 to 20 years (based on capex tier), followed by a 50% reduction for two additional years. Capex thresholds: IDR 100b–500b (5 years), 500b–1t (7 years), 1t–5t (10 years), 5t–15t (15 years), 15t–30t (20 years). Pioneer industries include basic metals, oil & gas refining, downstream petrochemicals, semiconductors, EV components and batteries, marine transport equipment, pharmaceutical raw materials, and renewable energy generation. Application is via OSS-RBA with substantive review by BKPM and a Tax Holiday committee. Once granted, the holiday begins on the date of commercial production. Replaces PMK 150/2018. Stacks with KEK fiscal incentives where applicable but cannot stack with Tax Allowance (PP 78/2019) — investors choose one regime.