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The government has provided several incentives for business actors listed in the Minister of Finance Regulation (PMK) number 105 of 2016. In this regulation the government provides tax and customs reduction facilities for companies in industrial estates, including the JIIPE industrial estate.
VAT exemption facility for import and / or delivery of machinery and factory equipment which is a single unit, both in an installed and detached condition, and industrial estate companies that carry out business activities in the industrial sector that produce goods and / or services.
Taxpayers operating in one of 431 specific industries, KITE companies, and companies in bonded industrial zones, are designated as low-risk PFM so as to get a restitution facility accelerated up to a maximum overpayment amount of Rp. 5 billion, without the requirement to carry out certain activities such as conducting export of taxable goods or services, surrender to VAT collectors, or surrenders that are not subject to VAT collection. This facility was previously only given to 102 industrial sectors and KITE companies in the industrial area.
For machine release, with the condition that the machine does not yet exist or has not been assembled in Indonesia. These efforts were made in order to reduce the economic burden of taxpayers due to the Covid-19 outbreak.
East Java Industrial Estate JIIPE is the largest industrial estate in East Java as well as the first integrated industrial estate in Indonesia which has been equipped with ports and docks for yachts and housing with an environmentally friendly industrial area, named GEM City, with various exclusive facilities, such as golf courses and shopping centers within the industrial estate.