The arts and culture development are generally not-for-profit activities, and for that reason, artists frequently need funding from the private sector. During the negotiation process with the potential donor, artists proposing for funds may offer the tax incentive policy as a benefit for the donor.

One of the regulations serving as the basis for this initiative is the Government Regulation Number 93 of 2010 concerning Income Tax Incentives for Grants, which has been applicable since the 2010 tax year. Based on that policy, the company which acts as a donor for arts and culture activities is eligible for a tax cut up to 25% of the donation amount. Other regulations on tax incentives include the Investment Law Number 25 of 2007 Article 15 point (b), the Limited Liability Company (PT) Law Number 40 of 2007 Article 74, and the Regulation of the Ministry of Finance Number 76/PMK.03/2010 concerning Donations.

Many companies and arts activists do not notice this tax incentive policy yet, therefore Koalisi Seni has been actively disseminating the information since 2012.

Koalisi Seni is currently monitoring the Government Regulation Number 45 of 2019 on Amendment to the Government Regulation Number 94 of 2010 on Calculation of Taxable Income and Income Tax Payment within the Current Year. The so-called “super tax deduction” stipulates a reasonably high tax incentive for vocational as well as research and development activities, which should also be implemented for arts and culture activities.