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Jakarta Post

Government to finalize two revised regulations on KEK

  • News Desk

    The Jakarta Post

Jakarta   /   Thu, April 11, 2019   /   04:06 pm
Government to finalize two revised regulations on KEK The secretary to the Coordinating Economic Minister, Susiwijono Moegiarso (Kompa/File)

The government is now in the final stage of revising two regulations on special economic zones (KEKs) to encourage investors to do business in prepared areas set to become new growth centers in many parts of the country more applicable.

Susiwijono, the secretary to the Coordinating Economic Minister,  said on Wednesday that the main objective of the revisions was to facilitate investment in special economic zones to boost economic growth.

“We will complete the revisions this week,” he said as quoted by kontan.co.id, referring to Government Regulation (PP) No. 96/2015 on facilitating ease of doing business in KEK and PP No. 100/2012 on the management of KEK.

He said the revised regulations provided more details on fiscal incentives like tax holidays and tax allowances, as well as on non-fiscal incentives.

While Susiwijono did not clarify these "details", he said that the revised regulations would likely cover matters like foreign workers and immigration facilities. “Individual taxes will also be included in the new regulations,” he added.

Indonesia currently has 12 KEKs with Rp 105.54 trillion (US$7.46 billion) in total investment commitments, and has targeted expansion to 17 KEKs this year.

The KEK are located in: Sei Mangkei, North Sumatra; Tanjung Lesung, Banten; Mandalika, East Nusa Tenggara; Palu, Central Sulawesi; Bitung, North Sulawesi; Morotai, North Maluku; Tanjung Api-Api, South Sumatra; Maloy Batuta Trans Kalimantan (MBTK), East Kalimantan; Tanjung Kelayang, Bangka Belitung; Sorong, Papua; Arun Lhokseumawe, Aceh; and Galang Batang, Riau Islands. (bbn)