Government Sets 0 Percent Income Tax For MSMEs At IKN Nusantara

Illustration. (Photo: Doc. Antara)

JAKARTA - The government issued Government Regulation No. 12/2023 regarding business licensing in the capital city of Nusantara (IKN), one of the contents is establishing a 0 percent final income tax facility for income from the circulation of certain gross businesses in MSMEs.

"This regulation indicates the government's alignment with micro, small and medium enterprises (MSMEs) who are one of the supporters of Indonesian economic teachers," said Head of the Archipelago Capital Authority (OIKN) Bambang Susantono, in Nusantara, East Kalimantan, quoted from Antara, Thursday 9 March.

Government Regulation (PP) Number 12/2023 related to the provision of business licensing, ease of doing business, and investment facilities for business actors at IKN aims to provide greater certainty, opportunity, and participation for business actors to accelerate the development of the archipelago.

The hope for greater participation from these business actors is for equitable development, including to accelerate Indonesia's economic movement in the future.

The issuance of PP Number 12 of 2023, he said, is proof that the government is serious in providing legal certainty and ease of doing business for business actors who want to participate in the development of the archipelago.

He believes that the issuance of this regulation will have a positive impact on economic turnover, including accelerating the development of IKN with investments originating from the private sector both from within and outside the country.

"The issuance of this PP is a tangible form of direction from the President of the Republic of Indonesia Joko Widodo to provide attractive policy packages with the maximum possible incentives, in the corridor of the applicable law," said Bambang again.

The Government Regulation Number 12/2023 includes five regulatory scopes, namely related to business licensing, ease of doing business, investment facilities, supervision and evaluation.

These arrangements include, among others, related to business licensing, there are 12 articles, related to the ease of doing business there are 10 articles, for the scope of the investment facility there are 42 articles, then for the scope of supervision there are 2 articles, and related to the evaluation there are 1 article.

He invited the public to study PP No. 12/2023 thoroughly, so that the essence of this PP can be understood in its entirety, not in pieces so that there is no wrong perception.

Bambang also said that in the future, derivative legal products from this PP will also be issued, namely to regulate in detail the implementation of the PP.

"Degenital rules will soon be issued by relevant ministries/agencies, such as the Minister of Finance Regulation (PMK) and the Regulation of the Head of OIKN, namely to explain the mechanisms and procedures," said Bambang.