Conceptual Analysis on the Potential Regulation of Income Tax Incentives for Floating Hospital ’ s Financing by State-Owned Enterprises

This study aims to explore the possibility of tax facility to encourage financing of floating hospitals in Indonesia by state-owned enterprises. This research combines juridical and empirical methods by using data collected from questionnaire, interview, and literature studies. This study finds that income tax facility in the form of deduction of donation made for floating hospitals from taxable income of state-owned enterprises could increase their interests in financing operating expenses of floating hospitals. In formulating the facility, the Ministry of Health should communicate with the Ministry of Finance to expand the scope of tax allowance to include floating hospitals as social infrastructure or to qualify donations made specifically to improve accessibility of health facilities in certain regions.


One of the Sustainable
Development Goals (SDGs) targets is to ensure "(…) healthy lives and promote well-being for all at all ages," which could be found on Goal 3. Furthermore, one of the Goal 3 targets, which is Goal 3.8, is to broaden "(…) access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all."To achieve it, participation from the wider community is necessary, both in the providing services or financing.
The geographical conditions of Indonesia, which consists of more than 17,000 islands, certainly provide challenges in achieving this target.Access to health is not only provided for those who live within the large islands, but also for those who live in archipelagic areas.
Efforts to expand health access This directly affects the cost that needs to be paid.For example, to operate the ships to provide health services, floating hospitals are subjected to industrial fuel prices.
Similar categorization also applies to port fees, pharmacies, and the travel expense for the medical personnel to and from the location.
In order to anticipate such problems, there needs to be a the future, floating hospitals may expect their operations to be financed by BUMN TJSL programs.

1Regulation2
Appendix to Regulation of the Minister of Health of the Republic of Indonesia Number 21 of 2010 concerning the people living in various island groups.In line with this strategy, the Ministry of Health has also set a target that by 2024, all first-level health facilities and hospitals will be accredited.To ensure the achievement of these targets, the Appendix to the a quo Regulation of The Minister of Health has emphasized the need for "guaranteed health financing in the state budget (APBN) and regional budget (APBD) as well as adequate financing balance" for the Individual Health Efforts (UKP) and Public Health Efforts (UKM). 1 There are many efforts that can be made to ensure the achievement of this target, namely by providing an easy source of financing for the mobile Strategic Plan of the Ministry of Health for 2020-2024, p. 27 Adrianto Dwi Nugroho and Regina Ditta Prameswari Bismark, Conceptual Analysis on the Potential Regulation of Income Tax Incentives for Floating Hospital's Financing by State-Appendix to Presidential Regulation of the Republic of Indonesia Number 72 of 2012 concerning the National Healthcare The financing of floating hospitals' operation is becoming urgent, because, floating hospitals are commonly recognized as an industrial operators, rather than as a health service provider/hospital.
place on finding a balance between the amount of revenues forgone by the state, and the multiplier effect that the facility can create (e.g., job hiring, creation of competition).Therefore, a proposal for an Income Tax facility must be preceded by a cost and benefit analysis 44 whereby the "cost" component represents the "lost revenue from investments that would have been made anyway", as well as indirect costs, whereas the "benefit" component represents the "revenue and economic rise", as well as social benefits obtained through the increasing number of investments.Using the analysis, an Income Tax facility may only be granted if the benefits outweigh the costs, as such that the lost revenues are justified by the multiplying effect of policy would serve 50 Interview with Haula Rosdiana, loc.cit. 51Ibid. 52Kees D. Thompson, "A Penny for Your Clots?Examining Tax Incentives for as a push factor that would increase BUMN's participation in health financing, as a form of social solidarity.As a multiplier effect, the channeling of TJSL funds to floating hospitalsunder FDA Guidelines," Food & Drug Law Journal 75 (2020).p. 114 Adrianto Dwi Nugroho and Regina Ditta Prameswari Bismark, Conceptual Analysis on the Potential Regulation of Income Tax Incentives for Floating Hospital's Financing by State-

The Potential Regulation of Income Tax Facilities for BUMN Participating in Financing Floating Hospitals' Activities a. Conceptual Framework on Income Tax Facilities
36Reuven S. Avi-Yonah, "Corporate