Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
A Systematic Literature Review on the Implementation and Impact of Tax Holiday Policy in Indonesia
Abd Hakim Achmad, Ikhram Vionda
31 January 2026 · Vol. 2, Issue 1, pp. 58-65
DOI: 10.65150/EP-jefrr/V2E1/2026-07
Download full text (PDF)Cite this article
What is this article about?
The implementation of tax holiday policy in Indonesia represents one of the most strategic fiscal instruments used to enhance competitiveness and attract long-term investment. This study aims to synthesize and evaluate the implementation and economic impact of Indonesia’s tax holiday policy through a Systematic Literature Review (SLR) based on PRISMA protocol, covering 25 peer-reviewed studies published between 2015 and 2025.
Article at a glance
- Published
- 31 January 2026
- Volume / issue / pages
- Vol. 2, Issue 1, pp. 58-65
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
The implementation of tax holiday policy in Indonesia represents one of the most strategic fiscal instruments used to enhance competitiveness and attract long-term investment. This study aims to synthesize and evaluate the implementation and economic impact of Indonesia’s tax holiday policy through a Systematic Literature Review (SLR) based on PRISMA protocol, covering 25 peer-reviewed studies published between 2015 and 2025. The selected literature includes both international journals and nationally accredited (SINTA 1-3) publications, analyzed through thematic and bibliometric methods. The findings indicate that tax holidays have generally contributed to increased foreign direct investment inflows, particularly in capital-intensive industries, yet their fiscal and regional effects remain uneven. The policy’s effectiveness is largely determined by institutional quality, administrative consistency, and macroeconomic stability rather than by tax reduction alone. This review concludes that while tax holidays remain relevant as an investment stimulus, they require integration with broader fiscal and governance reforms to sustain their impact. The study contributes to the academic and policy discourse by presenting an evidence-based synthesis of Indonesia’s fiscal competitiveness strategy and identifying methodological gaps for future research.
Keywords: Tax holiday, fiscal policy, foreign direct investment, Indonesia, systematic literature review
Cite this article
Abd Hakim Achmad, & Ikhram Vionda (2026). A Systematic Literature Review on the Implementation and Impact of Tax Holiday Policy in Indonesia. Journal of Economic, Finance Research and Review, 2(1), 58-65. https://doi.org/10.65150/EP-jefrr/V2E1/2026-07
@article{Abd2026,
title = {A Systematic Literature Review on the Implementation and Impact of Tax Holiday Policy in Indonesia},
author = {Abd Hakim Achmad and Ikhram Vionda},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {1},
pages = {58-65},
doi = {10.65150/EP-jefrr/V2E1/2026-07},
url = {https://doi.org/10.65150/EP-jefrr/V2E1/2026-07}
}Questions about this article
Who wrote this article?
Abd Hakim Achmad, Ikhram Vionda.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 1, pages 58-65, published by EP Journals Group on 31 January 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E1/2026-07 (https://doi.org/10.65150/EP-jefrr/V2E1/2026-07).
How do I cite this article?
APA: Abd Hakim Achmad, & Ikhram Vionda (2026). A Systematic Literature Review on the Implementation and Impact of Tax Holiday Policy in Indonesia. Journal of Economic, Finance Research and Review, 2(1), 58-65. https://doi.org/10.65150/EP-jefrr/V2E1/2026-07
More research from JEFRR
- Understanding Green Purchase Intention in the Digital Era: Green Communication, Brand Image, And Brand Trust
Dini Safitri, Sharon Claudia Rambu Podu Diah, Olaf Tri Wilopo Simanjuntak, Muhammad Fadli · Oct 2026
- Digital Marketing Transformation and Consumer Purchase Behaviour in Post-Pandemic Markets
Rezwan Hossain, Muhammad Shoaib, Darda Rahman · Oct 2026
- Effectiveness of Financial Literacy and Financial Inclusion on Competitiveness of Small and Medium Sized Enterprises in Uganda: The Mediating Role of Financial Planning
Eric Nzibonera, Godfrey Akileng, David Namanya · Oct 2026
- Relationship Between Community Policing Participation and Crime Reduction Among Lagos State Neighbourhood Safety Corps (LNSC) in Ikorodu West and Ikorodu Central, Lagos State
Oluwaseun Segun Adejuwon, Jatau Seikhan Nathan, Dr. Ajagun Olusegun Peter, Adebisi Gbenga Adejuwon · Oct 2026
- The Double Divide Revisited: Sector Composition, Within-Sector Adoption and Artificial Intelligence Use Among Minority- And Women-Owned U.S. Businesses
Olufemi Olumayowa Oni, Abimbola Usman, Olusegun Opeyemi Oni, Promise Okwarajiaku · Oct 2026