Indonesia Offers Tax Cuts to Lure Investors to New Capital
- Minimum 10 billion rupiah investment eligible for lower rates
- New rule issued on March 6 and takes effect immediately
Titik Nol Nusantara (ground zero Nusantara), the future capital city for Indonesia, in East Kalimantan.
Photographer: Bagus Saragih/AFP/Getty Images
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Indonesia lowered taxes on some investments and sweetened land acquisition terms as part of efforts to attract funds for its $34 billion new capital project that’s struggling to take off.
The government will provide up to 100% corporate tax holiday for companies investing at least 10 billion rupiah ($650,745) in the new capital in Borneo, according to a new rule announced March 6. It also exempts individuals working and living in the new city from income tax, among other perks offered for a maximum 30 years.