THE IMPACT OF CORPORATE INCOME TAX AND TAX HOLIDAY POLICY ON DIRECT FOREIGN INVESTMENT IN INDONESIA

Foreign investment has an important influence on a country's economy, it is also considered to be more resilient crises because investors generally have long-term perspective when investing in country. However, the economic crisis Indonesia caused inflow of foreign direct experience drastic decline which led slowdown growth Indonesia. To increase interest again, necessary incentive policy order attract investors. Therefore, this study aims examine whether corporate income tax rate set by government and holiday determine investment. Based purposive sampling, sample 38 inflows from 1981-2018 was obtained. The results show that significant negative effect investment, but not proven indicate determining rules policies, especially rates, consider interests