Ministry of Finance Regulation No. 130/PMK.010/2020 on Corporate Income Tax Reduction Facility (Tax Holiday)
Peraturan Menteri Keuangan Nomor 130/PMK.010/2020 tentang Pemberian Fasilitas Pengurangan Pajak Penghasilan Badan
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
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.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
17 pioneer industries
Basic metals, oil & gas refining, downstream petrochemicals (with derivative chemistry), semiconductor components, EV main components and batteries, ship/aircraft/train manufacturing, telecommunications equipment, pharmaceutical raw materials, renewable-energy generation, robotics, and others.
- 02
Holiday duration by capex
5/7/10/15/20 years of 100% CIT exemption depending on investment value, followed by 2 years of 50% reduction.
- 03
Eligibility
Foreign-owned PT PMA, primary KBLI on the pioneer-industry list, capex meets minimum, application made before commercial production begins.
- 04
Application path
Filed via OSS-RBA → BKPM substantive review → Tax Holiday committee decision. Final decision typically 5-10 working days for applications meeting the threshold.
KBLIs affected
Indonesian business classifications explicitly referenced or governed by this regulation.
7 KBLIs referenced by PMK 130/2020 (Tax Holiday)
Click a code to see the full KBLI profile — risk, foreign-ownership, licensing, and setup cost.
- 20114tax-holiday pioneer
Industrial inorganic chemicals — pioneer industry
- 21012tax-holiday pioneer
Pharmaceutical raw materials — pioneer industry
- 21022tax-holiday pioneer
Pharmaceutical preparations — pioneer industry
- 24109tax-holiday pioneer
Basic iron & steel — pioneer industry
- 26120tax-holiday pioneer
Semiconductors and electronic components — pioneer industry
- 30400tax-holiday pioneer
Military combat vehicles — pioneer industry
- 35101tax-holiday pioneer
Power generation (renewable focus) — pioneer industry
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Peraturan Menteri Keuangan Nomor 130/PMK.010/2020 tentang Pemberian Fasilitas Pengurangan Pajak Penghasilan Badan
tentang Pemberian Fasilitas Pengurangan Pajak Penghasilan Badan
Need help complying with PMK 130/2020 (Tax Holiday)?
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