Tax Allowance Policy to Increase Investment Climate in Fishery Sector

As one of the largest fish producers in the world, Indonesia’s total production of fisheries sector reach 25 million tons per years and its export volumes has increased up to 12.82 % growth. Fisheries production has also contributed to Gross Domestic Product (GDP) with 6.79% in Q3 2017, higher than National GDP with 5.03%. The President of Indonesia established a new vision to strengthen Indonesia position as a maritime country. It is to make Indonesian sea as the future of the Nation. In order to boost fishery sector development, the government has launched a Tax Allowance Policy which is targeting domestic and foreign investment. This study aims to analyze the implementation of tax-allowance policy in order to attract investors in the certain business fields and certain areas of fishery sectors. This facility is not well-utilized by the investors in fishery sectors compared to other sectors. It’s only one company that have been approved to get the facility until 2019. This study uses a qualitative approach with data collection methods in the form of in-depth interview and secondary data. The results of this study show that policy contents and some rules affect the policy implementation. The Ministry of Marine Affairs and Fisheries must review the appropriate business fields to be given the tax allowance facility and conduct the socialization intensively