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No takers yet for incentives to invest in future capital city
Potential investors have yet to take advantage of a wide range of incentives the government is offering to firms willing to help build the new capital city in Kalimantan.
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IKN Authority head Bambang Susantono speaks to business executives in Davos, Switzerland, on Jan. 17. (Investment Ministry Youtube Channel/-)
N
o potential investors have taken advantage so far of a wide range of incentives the government is offering to firms willing to help build the new capital city in Kalimantan.
Nusantara Capital City (IKN) Authority head Bambang Susantono said investors preferred to see projects for themselves first, such as the terrain and the progress of the initial development.
He said it was common for investors to conduct feasibility studies and structure their business plans before making a decision on a project.
“Not yet, they are still studying [proposals], including by asking us [about the incentives]’,” Bambang told The Jakarta Post at an event in Bali on Thursday.
The government has issued a regulation granting firms willing to invest in the megaproject years of corporate income tax exemptions, decade-long permits for bringing in foreign workers and almost century-long land rights, among many other incentives.
Experts likened the incentives to a fire sale by a government in urgent need to attract investors.
However, interest in the new capital had been growing significantly, as reflected in foreign delegations now visiting the authority about every two weeks, Bambang said on the sidelines of the event titled Southeast Asia Development Symposium (SEADS) 2023: Imagining a Net-Zero ASEAN.
