Local newswires, including Tempo are reporting that Bambang Susantono, the head of The Nusantara National Capital Authority (IKN) highlighted generous incentives for companies that invest in the new capital city project in East Kalimantan. The government regulations on the incentives, he said, are being finalized.
Bambang mentioned that one of the incentives being discussed is a 30-year tax holiday in the early stage for companies investing in the infrastructure and public services sector worth IDR 10-billion.
“This is longer than other regions. That’s one example,” he said at the pre-market sounding event on the state capital project at the Djakarta Theater, Central Jakarta, on Tuesday, October 18, 2022.
The tax breaks will also be given to investors who build economic facilities, such as shopping malls and tourist facilities. Investors will get a tax holiday for 20-years, claim Tempo.
Bambang added that investors holding research and development in certain fields can get a super tax deduction of up to 350-percent. All of the benefits, he informed, will be stated in the government regulation which is in the finalization stage.
President Joko “Jokowi” Widodo earlier announced that investment in IKN Nusantara has been wide open. He asked all parties not to hesitate to invest in the new capital project because the legal umbrella is already clearly noted in Law No. 3 of 2022, which has been approved by 93-percent of the House of Representatives (DPR) members. “This is a golden opportunity that will not happen again,” he remarked.
Source: Tempo
