The Government Is Still Working On Regulation Of Nusantara Investment Incentives

DOC/A number of cars pass on the road in the National Capital Region (IKN) Nusantara in Sepaku District, North Penajam Paser Regency, East Kalimantan, Sunday (6/2/2022). ANTARA PHOTOS/Bayu Pratama S/wsj/aa.

JAKARTA - The government continues to finalize the draft government regulation (PP) which will regulate a number of incentives to increase the attractiveness of investing in the nation's capital city (IKN) Nusantara.

The various incentives prepared were discussed in a limited cabinet meeting chaired by President Joko Widodo and attended by the Head of the Nusantara IKN Authority, Bambang Susantono, and the Deputy Head of the Nusantara IKN Authority, Dhony Rahajoe, at the Presidential Palace in Jakarta, Tuesday, August 23.

Bambang ensured that the PP plan to provide incentives would be the subject of further studies from the Ministry of Investment/Investment Coordinating Board (BKPM).

"God willing, in the next month we want there to be an acceleration for the issuance of this incentive plan, the title of which is about a special incentive to facilitate investment in the nation's capital city (IKN) Nusantara," Bambang told reporters after the meeting reported by ANTARA.

Bambang emphasized that basically the PP design for investment incentives in IKN Nusantara is sought to be equal to or even more than other investment target places in Indonesia.

He gave an example for the tax holiday tax incentive facility in one place which reaches 15 years, then at IKN Nusantara it can be valid for up to 20 years.

"So a little more so that people are more interested in investing in IKN," said Bambang.

Bambang acknowledged several initiatives from the proposed investment incentives at IKN Nusantara, among others, based on the results of the joint socialization with the Indonesian Chamber of Commerce and Industry (Kadin) with investors.

The IKN Authority is also actively seeking to find out what kind of desires and attractiveness can be appropriate among investors so that they want to invest in IKN.

"God willing, in the next two weeks and three weeks we will be more concrete," said Bambang.

Meanwhile, according to Dhony, the PP will cover at least three things, namely, first, the ease of doing business in IKN for investors.

"That is among other things regarding land issues. How can it be attractive for investors and for the general public to live (in IKN -ed)," said Dhony.

The second is regarding licensing so that the process becomes simpler. And thirdly, incentive facilities at IKN must be more attractive than similar things that already exist in other parts of Indonesia.

"In terms of gravity, it will become the center of gravity, the epicenter of the economic movement, that's the vision. Now how do we design all the existing regulations to support it," said Dhony.

Regarding the place of residence, for example, Dhony gave an example that it could be a certificate of ownership. As for the certificate of building use rights (HGB), the meeting also discussed so that the submission could result in a longer HGB period than the current one, which is 30 years.

"We are currently discussing the principles, later when they are signed, I think they will be final," said Dhony.

Previously, at the World Economic Forum (WES) in Davos, Switzerland, last May, the IKN Authority was also aggressively promoting Nusantara IKN to global company leaders.

During his working visits to a number of countries over the past few months, President Joko Widodo has also aggressively promoted investment opportunities for IKN Nusantara.

One of them, President Joko Widodo and the President of the United Arab Emirates (UAE) Sheikh Mohamed bin Zayed bin Sultan Al Nahyan in early July 2022, the two leaders followed up on discussions on investment cooperation for IKN development.

Meanwhile, during a working visit to South Korea at the end of July 2022, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the Ginseng State conglomerate company, LG Corporation, expressed interest in contributing to the smart city development concept at IKN Nusantara.