JAKARTA - Knight Consultant Frank Indonesia revealed Government Regulation (PP) number 12 of 2023 concerning the Granting of Business Licensing, Ease of Doing Business, and Investment Facilities in the State Capital (IKN) of the Archipelago such as exemption from Value Added Tax (VAT) provides a positive boost to investors.
"The existence of VAT exemptions that prioritize housing development, based on the precedent of VAT exemptions that have been implemented in the past, provides a positive boost or incentive," said Director of Strategic Consultancy Knight Frank Indonesia Sindiani Adinata in an online discussion in Jakarta, quoted from Antara, Thursday 9 March.
According to him, this certainly provides an encouragement to increase interest in the residential property market at IKN Nusantara.
"Prospects of property (hunian) in IKN depend on how much population will be moved, in the first stage that will be moved is ASN so that it becomes a captive market," he said.
As for the industrial property market in IKN, Knight Frank Indonesia sees not only from supporting regulations but also underlying demand generators from industrial areas seen by investors.
"In general, we see positive signals from investors and developers to invest in IKN by looking at the socialization that has been carried out by the government. It looks like a lot of Letter of Intent (LOI) from incoming investors and interested in investing in IKN," said Sindiani Adinata.
Previously, President Joko Widodo had set PP number 12 of 2023 concerning the Provision of Business Licensing, Ease of Doing Business, and Investment Facilities in the State Capital (IKN) Nusantara.
In the regulation, the government frees or does not collect VAT from a number of tax objects, including new buildings in the form of landed houses, flats, offices, shops/shopping centers, and/or warehouses for certain private persons, certain agencies, and/or certain ministries/agencies.
The provision of business licensing, ease of doing business and investment facilities in the capital city of Nusantara in this Government Regulation is intended to encourage the acceleration of the development of the capital city of Nusantara as an economic superhub with investment activities originating from the private sector both from within and outside the country.
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