The Head of the Nusantara Capital Authority is currently finalizing a Draft Government Regulation on the provision of special incentives for National Capital City ("Ibu Kota Negara" or IKN) investors.
"We are finalizing the Draft Government Regulation, which will provide various fiscal and non-fiscal incentives for those who will invest in IKN Nusantara," said Bambang Susantono at the National Capital City Project Premarket Sounding event.
Tax holiday will be one of the incentives that will be given to IKN Nusantara investors. This incentive is a reduction or elimination of taxes imposed on taxpayers for a certain period of time.
Tax holiday scheme at IKN Nusantara has a longer period of time than other regions in Indonesia. This is stated in the current Draft Government Regulation, which is nearing completion.
According to Belasting.id, tax holiday period at IKN will be adjusted based on the type of investment. For investments in infrastructure development and public service facilities, the longest tax holiday period is 30 years.
"I give an example of tax holiday for infrastructure and public services with a minimum investment value of IDR 10 billion. We will ensure that this tax holiday is given for 30 years, longer than other regions," he explained.
There is also a provision of tax holidays for investors who will build economic facilities such as malls and MICE (Meeting, Incentive, Convention and Exhibition). They will receive tax holiday facilities for 20 years.
On this occasion, Bambang Susantono also explained that government offers other fiscal incentives to IKN investors. For investment in research and development (R&D) activities, a supertax deduction facility of up to 350% of the costs incurred for research activities at IKN Nusantara is provided.
