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New tax, land incentives to woo investors to capital city project
The Indonesian government has announced incentives including tax holidays and a tax deduction to increase the attractiveness of its megaproject for a brand-new city to be built in Kalimantan.
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President Joko “Jokowi” Widodo speaks at an IKN market-sounding event on Oct. 18. (BPMI Setpers/Muchlis Jr)
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he government has announced incentives including tax holidays and a tax deduction to make its project for a brand-new city to be built in Kalimantan more attractive.
In a market sounding for the Nusantara Capital City (IKN) on Tuesday, President Joko “Jokowi” Widodo asked potential investors “to communicate their concerns” should the tax incentives on offer fail to meet their expectations.
After the withdrawal of Japan's Softbank Group in March, experts and businesses have been raising concerns about the continuation of the megaproject, as approximately 80 percent of the funding is to come from external investors.
The government hopes that several new policies, including tax incentives and the creation of IKN-owned enterprises, would inspire confidence among potential investors.
“Soon, the government regulation on these incentives will be passed. What else needs to be done? Speak up, if you’re still not satisfied. [If you want us to have] a decree from the People’s Consultative Assembly [MPR], I have the speaker here with me,” the President said on Tuesday.
Read also: Jokowi, House seek to dispel doubts over new capital project
While details on the incentives will be specified in further regulations, government officials have laid out a few key policies.
