Various Tax Incentives For IKN Investors, Must Be Recorded!

Illustration of tax incentives (Photo: Pixabay/stavepb)

YOGYAKARTA The Nusantara Capital Authority (IKN) said the government offered various incentives to attract investors in IKN, one of which was related to taxes. So, what are tax incentives for IKN investors?

Tax Incentives For IKN Investors

Deputy for Funding and Investment of the IKN Authority, Agung Wicaksosno, said the government would provide tax incentives in the form of tax holidays or the abolition of temporary taxes for investors who invest in IKN.

"Tax holidays can generally be given if the investment value reaches Rp 100 billion and above. However, for investment in IKN, the condition is only Rp 10 billion," Agung said at the ASEAN Investment Forum 2023, in Jakarta, Sunday, September 3, 2023, quoted by VOI.

He added that the validity period of tax holidays for investors investing in IKN is also much longer, reaching 30 years from the provisions of the tax holiday in general, which is only 10 years.

Not only tax holidays, the government also offers a tax reduction if investors want to invest in the education or research sector.

"The government will also cover revenue taxes for investors living in the archipelago," said Agung.

Furthermore, the government has also prepared an investment return scheme for IKN development through availability payment or payment of service availability. The return of investment from the government is prepared within 15-20 years.

Agung said that currently the total private investment in the entertainment sector in the capital city of Nusantara has reached IDR 20 trillion or almost a quarter of the total development funding for the private sector.

"This mainly play means entertainment, hotels and so on, including green open space," he said.

The Deputy General said that in the 2020-2024 RPJMN, there was an IKN funding requirement of Rp. 466 trillion which was divided into 3 indications of funding, namely the APBN of Rp. 90.4 trillion, business entities/privates of Rp. 123.2 trillion, and KPBU of Rp. 252.5 trillion.

The private funding, which is dominated by the private sector from domestic origin, is mainly included in the 1A zone which will be the location for the construction of the Presidential Palace and several ministry offices.

"This area 1 is like around the palace, Monas, and so on. We focus on this first, this KIPP (Government Core Area) is around 6,000 hectares. Then we focus on the 1A area, this is only 1 A, we are targeting 2024 after that, there are many more," he said.

Furthermore, Agung said that he had received 270 investment interest from potential investors or letter of intent (LOI) for IKN both from within the country and outside Indonesia.

"Most of them are indeed the number one company from Indonesia, more than half of Indonesia. Then from other ASEAN, many of Singapore and Malaysia, the top 5 are Japan, Korea," he explained.

Especially for Malaysia, there are already two property companies that have committed to building 20 flats or flats in IKN.

The two companies are conducting a feasibility study to then wait for an evaluation from the government before obtaining permission to start construction.

"For Singapore, that's what they are most interested in renewable energy, then waste processing," he continued.

He said that currently there are 12 open investor sectors in IKN, including new and renewable energy, telecommunications, transportation, housing, and commercial infrastructure.

That's information about tax incentives for IKN investors. Get news updates of other options only on VOI.ID.