New corporate taxpayers in certain pioneer industries may enjoy a CIT exemption for a period of five to ten years from the start of commercial production. After the end of the CIT exemption, the company will receive a 50% CIT reduction for two years. To be eligible for the above facilities, taxpayers should be newly incorporated in Indonesia (not earlier than 14 August 2010), should have a legalized new capital investment plan of a minimum IDR 1 trillion, should deposit a minimum of 10% of their planned investment value in banks located in Indonesia, and should not withdraw the deposit prior to the realization of the investment plan.

An application for the tax holiday must be submitted to the Minister of Industry (MoI) or to the BKPM Chairman. A proposal for approval of the MoF will be made by the MoI or the BKPM Chairman after carrying out research on the applicant. Tax holiday proposals may be submitted to the MoF only until 15 August 2014.