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May

03

Tax Holiday for Investment in The New Capital City of Indonesia

The Indonesian government has been contemplating a relocation of the country's capital from Jakarta to Nusantara. The development of the new capital requires substantial private investment, and the government is incentivizing such investment with the recently enacted Government Regulation Number 12 of 2023 on the Provision of Business Licenses, Ease of Doing Business, and Investment Facilities for Businesses in the Nusantara Capital City ("GR 12/2023"). This regulation offers several incentives, including a tax holiday, which entails a 100% reduction in corporate income tax. The tax holiday is granted in the following circumstances:

  1. Domestic corporate taxpayers receive a reduction in corporate income tax, provided they have made a minimum investment of Rp10.000.000.000 (ten billion rupiah) in business fields that have strategic value in the development of the new capital city. Such fields include infrastructure and public services, economic awakening (such as the construction and operation of shopping centers), and other business fields (such as construction services).
  2. Domestic corporate taxpayers and permanent establishments involved in financial sector activities in the financial center of the new capital city may receive a reduction in corporate income tax of up to 100%. However, this only applies to banking, insurance, and sharia finance activities.
  3. Business actors with foreign tax subject status, who establish and/or relocate their head office and/or regional office to the Nusantara capital city, may be granted a 100% reduction in corporate income tax. To be eligible for this facility, they must have at least two affiliated units and/or related business entities outside Indonesia, possess economic substance in the new capital city, and form a legal entity in the form of a limited liability company in Indonesia.

Should you have any queries regarding the above topic, Schinder Law Firm Jakarta Indonesia is among several corporate law firms in Indonesia with extensive experience and proficient corporate and civil lawyers. We invite you to contact us at info@schinderlawfirm.com for further consultation on this matter.

Author: Budhi Satya Makmur

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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

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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.
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