English | 中文 | 下载审德中文简介 

Hotline +62-812-8702-3281

May

24

Incentives for New Capital City Project in Indonesia

The Indonesian government has recently issued Government Regulation No.12 of 2023 concerning the Granting of Business Licenses, Business Ease, and Investment Facilities for Business Actors in the New Capital City of Nusantara ("GR 12/2023"), which provides various fiscal and non-fiscal incentives to businesses seeking to invest in Indonesia's new capital city, Nusantara. The regulation aims to provide greater certainty, opportunities, and participation for business actors to accelerate the development of Nusantara, thus leveling up development and driving Indonesia's economy forward. GR 12/2023 is eagerly anticipated by business actors, both domestically and internationally. Furthermore, the Investment Ministry/Investment Coordinating Board (BKPM) has prepared business licensing services for the Digital Nusantara Detailed Spatial Plan (Rencana Detail Tata Ruang or RDTR).

The incentives afforded to investors include corporate income tax exemptions, tax holidays, and personal income tax exemptions for investments in priority projects in the new capital, such as ports, airports, renewable energy systems, and healthcare services, among many others.

The government will provide income tax holidays and reductions for investments in Indonesia's new capital city. Furthermore, the government will issue future implementing regulations on how the tax facilities will be regulated. The government will provide up to 100% corporate income tax exemption for between 10 and 30 years for domestic taxpayers that invest at least IDR 10 billion in the new capital. The duration of the incentive depends on the sectors in which the investment is directed. For instance, investing in public services will receive the longest tax holiday, up until 2035. Banks and insurers that invest before 2035 can enjoy up to 25 years of income tax exemption, whereas those that invest before 2045 can receive up to 20 years of income tax exemption.

According to GR 12/2023, the health sector is eligible for incentives in the form of a reduction in corporate income tax up to 100% for a period of 30 years, which is aimed at investors who invest between 2023 and 2030. The government also provides various facilities for business licenses, land use, and building facilities development. Functional permits and building certificates are charged a fee of Rp 0.

Developers of other critical infrastructure, such as public works, airports, seaports, and housing, can also benefit from the incentives, as well as businesses that engage in economic development through the construction of hotels, malls, energy infrastructure, and software, among many others.

Corporate income tax reductions will be available for investors that develop financial centers in the new capital, as well as for companies that relocate their head offices to the new capital. Moreover, investors that implement certain research and development activities will be afforded a reduction in their gross income. Further, micro, small, and medium-sized enterprises in certain business activities will also pay a zero percent corporate income tax rate.

The government also offers exemptions on import duties for the import of goods used for the construction and development of Indonesia's new capital. Further, there are import duty exemptions for the import of goods and materials used in the construction and development of industries within the new capital.

If you need consultation concerning these issues, Schinder Law Firm is one of the many corporate law firms in Indonesia. Our professional civil lawyers strive to understand your unique needs and concerns. We will develop creative, cost-effective ways to assist you. Contact us at info@schinderlawfirm.com today to schedule a consultation to discuss your situation and how we can help.

Author: Dewi Susanti

Recent Posts

Let Us Be Your Guide.
Our thorough understanding of local culture
ensures that your business will be in compliance
with all laws and regulations and receive
a warm welcome in the community.

Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Our Service

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.
Read More