The Indonesian government will soon issue a regulation on tax incentives for investors of the Nusantara Capital City (IKN). Nusantara Capital City (IKN) Authority’s head Bambang Susantono revealed that President Joko Widodo had signed the forthcoming government regulation (PP). “There will be a new PP this week on incentives for investments in IKN,” Bambang said Monday.
The regulation will contain six incentives: tax holidays, tax holidays for office relocations, supertax deductions for certain activities, leeways in customs and excise administrative policies, special tax relaxations for activities in economic centers, and special value-added tax (VAT) provisions. The IKN Authority will also establish an Authority-Owned Enterprise (BUMO) named PT Bina Karya, which will work directly with investors. “Investors prefer to collaborate on the business-to-business [B2B] rather than business-to-government [B2G] scheme,” he said.