Peraturan Pemerintah Nomor 78 Tahun 2019 tentang Fasilitas Pajak Penghasilan untuk Penanaman Modal di Bidang-Bidang Usaha Tertentu dan/atau di Daerah-Daerah Tertentu

PP 78/2019 governs the Tax Allowance — Indonesia's broader-eligible (but smaller) corporate income tax incentive. Eligible PMAs in 245+ designated priority sectors receive a 30% reduction of taxable net income, claimed at 5% per year over 6 years; accelerated depreciation/amortisation; an extended loss-carry-forward of up to 10 years; and a reduced 10% withholding tax on dividends to foreign shareholders. Sectors covered are listed by KBLI and span agriculture, food and beverage processing, textiles, leather, chemicals, pharmaceuticals, machinery, electronics, transportation equipment, and many others. The regulation operates as the default fallback when an investor's KBLI is on the priority list but doesn't meet Tax Holiday's pioneer-industry definition. Application is filed via OSS-RBA before commercial production. Cannot be combined with Tax Holiday (PMK 130/2020); investors elect one regime.