Open AccessDAMPAK KEBIJAKAN TAX HOLIDAY PADA ALIRAN MASUK FDI INDUSTRI PIONIR DI INDONESIA
Author(s) -
Muhammad Tri Karimullah
Publication year - 2020
Publication title -
bana ekonomi : majalah ilmiah fakultas ekonomi universitas katolik parahyangan
Language(s) - English
Resource type - Journals
ISSN - 2442-675X
DOI - 10.26593/be.v22i2.3835.181-198
Subject(s) - foreign direct investment , tax incentive , indonesian , openness to experience , economics , investment (military) , international economics , tax policy , business , monetary economics , incentive , market economy , tax reform , macroeconomics , political science , psychology , social psychology , linguistics , law , philosophy , politics
In 2011, the Indonesian government issued a Tax Holiday policy as an incentive to attract investment. However, the policy is still considered not optimal in increasing FDI realization in Indonesian pioneer industry. This study aims to analyze the influence of the Tax Holiday policy in increasing the realization of direct investment in Indonesian pioneer industry; as well as to investigate other factors influencing the inflow of Foreign Direct Investment (FDI) in the industry. The results of descriptive analysis and VECM show that Tax Holiday policy has increased the realization of direct investment of pioneer industries in 2012 and 2014 by 5.17% and 4.66%, respectively. In addition, there are other factors that influence the FDI inflow to the Indonesian pioneer industry, namely: GDP, economic openness, labor force participation, loan interest rates, exchange rates, and per-capita GDP. Maintaining the stability of these factors is important to support Tax Holiday's policy in increasing direct investment activities in Indonesia pioneer industry.Keywords: tax holiday; Foreign Direct Investment; Indonesian pioneer industry