JAKARTA - Indonesian President Joko Widodo (Jokowi) inaugurated the groundbreaking for the construction of a 3-star hotel and restaurant by the BSH Hub Community in the National Capital City (IKN) of the Archipelago, East Kalimantan, today.
President Jokowi said that the project being built by BSH Hub Community would be the first 3-star hotel and restaurant in IKN.
"I really appreciate the construction of a 3-star hotel and restaurant by BSH, because there are no 3-star hotels yet. Then, there are no restaurants either, so I see this opportunity being taken by BSH," said Jokowi, quoted via the Presidential Secretariat YouTube, Thursday, December 21.
To attract more investment interest from local business actors in IKN, Jokowi said that the government would provide a series of incentives, starting from providing free income tax (PPh) to free value added tax (VAT).
Apart from that, the head of state also confirmed that in the near future all workers or employees who work at IKN will be exempt from paying PPh.
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Jokowi assessed that this was done to stimulate economic growth among medium-sized businesses who wanted to invest in IKN.
"But ladies and gentlemen need to know, for SMEs who invest in IKN, their PPh, VAT and employee income tax will indeed be exempted. To provide an economic trigger for SMEs who want to invest in IKN," he said.
Jokowi hopes that the construction of the three-star hotel and restaurant can be completed in the next seven months.
"I really hope that before July 2024 the hotel and restaurant will be ready and finished. So, we can enjoy it together," he concluded.
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