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Miners offered tax incentives for reforestation near new capital
The move seen by environmental groups as failure to held polluters accountable and risked leaving damaged lands in other areas unattended.
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This photo taken on Dec. 7, 2023 shows the construction of the Central Government District (KIPP) of the new capital Nusantara in North Penajam Paser regency, East Kalimantan. Public Works and Housing Minister Basuki Hadimuljono recently reported that the first phase of the construction for the new capital city had reached 60 percent. (Antara/M Risyal Hidayat)
T
he Nusantara Capital City (IKN) Authority will grant miners tax incentives for help in carrying out forest rehabilitation in the planned capital city, in a move seen by environmental groups as a failure to hold polluters accountable and which could see damaged land in other areas being left unattended.
The government has envisioned the planned capital city as a green and low-emission forest city, which includes ecotourism.
The government sees a need to rehabilitate around 120,000 hectares of land in the future capital city, said Pungky Widiaryanto, IKN Authority director of forestry and water-resources utilization, Kontan reported on Dec. 27.
It plans on doing so by granting miners tax reductions of up to 200 percent from taxable income based on the expense required to carry out the task.
Myrna Asnawati Safitri, IKN Authority deputy for environment and natural resources, said in an online briefing on Dec. 29 that it would not be obligatory for these companies to fulfill their rehabilitation duty in Nusantara.
Aside from mining, the tax incentives also apply to other degraded lands in the new capital area caused by the plantation and monoculture forestry sectors, she said.
For instance, Sepaku, the district within which the capital is located, is surrounded by eucalyptus forests for pulp and paper production, according to Reuters.
