The Government Will Give Tax Relief to New Capital Investors

The government promises a sweet offer to investors who want to invest in the new capital mega project (IKN). The private sector will get more attractive fiscal and non-fiscal incentives than other developments.

This figure was stated by the Head of the National Capital Authority (IKN) Nusantara Bambang Susantono, in the Pre-Market Sounding event for the State Capital Project, at the Djakarta Theater, Jakarta, Tuesday (18/10/2022). Attended by a series of ministers, and heads of high state institutions to domestic and foreign investors.

“For example, a tax holiday for public infrastructure worth a minimum of Rp 50 billion will be given for 30 years. This is longer than other regions,” said Bambang.

As for the construction of shopping centers, tourist areas, or MICE, you can get a tax holiday facility for 20 years. Then, continued Bambang, investors in certain research and development (R&D) fields will be given a super tax deduction of up to 350%.

“This is the finalization stage, then my duet with Mr. Donny (Vice Head of the IKN Authority) and Kadin. If the PP comes out, it can be implemented immediately,” he explained.

Currently, the construction of basic infrastructure for IKN has begun. The projects that are being prepared start from dams, and access roads, to residential areas.

“We are preparing several infrastructure matters, such as raw water from the Sepaku Semoi dam. Friends from the PUPR Ministry are speeding to start the year being flooded. Also, Sepaku intake for water needs in the archipelago is sufficient in 2030,” he said.

On this occasion, President Joko Widodo (Jokowi) assured investors that the IKN Nusantara development project is a promising investment. Moreover, the concept of a smart city that is carried does not yet exist in other countries.

“IKN Nusantara is a smart city of the future based on forests and nature in the world. Please look for this yet there is no difference, this is what differentiates it from capital cities of other countries,” he explained.

“Ladies and gentlemen, once again, there is no need to hesitate, there is no need to worry, because the legal umbrella is clear, namely Law NO 3/2022, and we must know that 93% of the factions in the DPR have approved all of it,” said Jokowi.

Meanwhile, Bambang said that access to logistics and connectivity at IKN Nusantara such as the Sepaku route is being prepared. In addition, several government buildings, namely the National Plaza, will be used for the Independence Day ceremony of the Republic of Indonesia on August 17, 2024.

Bambang added that the construction of housing for workers will be built starting next year.

“In terms of progress on the track, God willing, in 2023 it will be even more massive. We believe the target can be achieved,” he concluded.