1. Government Regulation No. 18 of 2015 on CIT Facilities for Investments in Certain Industries and/or Certain Areas (Investment Allowance) Directorate of Tax Regulation II Ministry of Finance of the Republic of Indonesia Directorate General of Taxes

2. LEGAL REFERENCES Article 31A of Income Tax Law I Govt. Regulation No. 18 of 2015 II MoF Regulation No. 16/PMK.03/2007 as amended by MoF Regulation No. 144/PMK.011/2011 III DGT Regulation No. 41/PJ/2013 IV

3. PROVISIONS 1.GR No. 18 of 2015 substitutes GR No. 52 of 2011 on second amendment of GR No. 1 of 2007 on Income Tax Facilities for Investments in Certain Industries and/or Certain Area. 2.The provided facilities: a.An investment allowance at 30% of the investments in tangible assets, charged 5% annually for 6 years since its commercial production; b.Accelerated depreciation and amortization; c.10% withholding tax rate on dividend paid to non-resident or applicable lower rates according to tax treaty; d.Tax loss compensation for 5 years up to 10 years.

4. Revised Provisions under GR-18/2015 Contd. Simplification on terms and procedures to accelerate the process and certainty for obtaining the facilities Adding more criteria for obtaining tax loss compensation of more than 5 years up to 10 years: - Capital reinvestment (2 years) - Employs > 1000 Indonesian workers (2 years) - Export > 30% of production (2 years) Additional industries entitled for Investment Allowance: + 14 Industries in attachment I (total 66 industries) + 0 Industry in attachment II ((+7 – 7), total 77 industries)

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