IKN Will Become A Center For Innovation Through The Utilization Of Tax Incentives

Tax illustration (photo: unsplash)

The Capital Archipelago Authority (IKN) supports IKN to become the center of innovation by utilizing tax incentives, especially tax deductions to support the acceleration of the preparation of various educational facilities and infrastructure.

Deputy Head of the IKN Authority, Dhony Rahajoe, in a joint discussion with the Ministry of Finance in Jakarta, Monday, October 9, said that the government wants to develop IKN as a center of innovation by utilizing various investment facilities for business actors.

"Right now, we are pushing for one model and I said to Mr. Imam (B. Prasodjo) I want the cloning in Purwakarta to be built there (IKN) smart village," said Dhony in a written statement in Jakarta, on Tuesday, October 10.

Dhony hopes that through the use of tax deduction as an incentive, it can accelerate investments sourced from non-APBN to companies that want to contribute to the development of educational areas.

On the same occasion, Deputy for Control of Investment Implementation at the Ministry of Investment/BKPM Yuliot said, there are a number of facilities to make IKN the center of innovation.

"That (research and development activity) is given a super tax deduction of up to 350 percent, then for training (and/or education) 250 percent," he said.

The tax reduction facility is regulated in Government Regulation (PP) Number 12 of 2023 concerning the Provision of Business Licensing, Ease of Doing Business, and Investment Facilities for Business Actors in the capital city of Nusantara or referred to as PP Ease of Doing Business. IKN.

In Article 42 of PP concerning Ease of Doing Business in IKN, educational and/or training activities at IKN for practical activities, apprenticeship, and/or learning in the context of fostering and developing certain competency-based human resources are provided with a maximum gross income reduction facility of 250 percent.

Meanwhile, research and development activities to generate interventions, develop innovations, mastery of new technologies, and/or transfer of industrial development technology to increase the competitiveness of the national industry.

Meanwhile, the Expert Team of the Good Seed Foundation, Imam B. Prasodjo, said the importance of building a social side of a city. According to him, physical development must be accompanied by development that pays attention to the human side, social capital, and the environment.

"We give the human eco happiness name paradigm. Human development to build IKN must be focused on trusted people, continue to build social capital in which economists, anthropologists, cultural capitals and so on, only the third is electronic capital. This must be integrated. Infrastructure is only supporting," he said.

Imam said it was important to also build social institutions in IKN. Therefore, the Good Seed Foundation will build the Science Village, especially in Palaluan Village, Sepaku District, East Kalimantan.

"The village of science, let us create a forum for empowerment with the scope of the village, but all corners in the village have empowerment centers. On the one hand, the state must be responsible, but in my opinion the company and society must be managed," added Imam.

Responding to this, Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said that the IKN Authority needs to pay attention to the user's status and prepare complete rules regarding budgets and goods.

As an implication for the ratification of the revision of the IKN Law, an IKN Authority will be transferred from a budget user/user of goods to a financial manager.

"The IKN Authority is not only a user but a manager, which means owning and managing. Therefore, it is necessary to have all complete rules as managers," he said.