Indonesia is unveiling an ambitious project to build a new capital city, Nusantara, and it's leaving no stone unturned to attract foreign investments. The government has rolled out an array of enticing incentives, ranging from income tax holidays to import tax exemptions. What's more, businesses can benefit from hiring foreign workers for up to a decade. With the recent issuance of Government Regulation 12 of 2023 (GR 9/2023), the opportunities for investors are more promising than ever.
The incentives on offer extend to a diverse range of sectors, including ports, airports, renewable energy systems, healthcare services, and many others. Corporate income tax exemptions, tax holidays, and personal income tax exemptions are among the perks available to investors in priority projects within the new capital. These incentives not only promise financial benefits but also create an attractive investment climate for ventures of all scales.
Nusantara, estimated to cost a whopping US$35 billion, is set to be a game-changer. The central government plans to kick off operations in the new city by 2024, allocating only 20% of the project cost to public funds, with the remaining investment coming from foreign sources. The government is even racing against time to have the presidential palace ready for the country's Independence Day anniversary on August 17.
President Joko Widodo has assembled a formidable team, comprising political and business heavyweights, to spearhead the new capital's steering committee. Notable figures such as Abu Dhabi Crown Prince Muhammad bin Zayed Al Nahyan and former British Prime Minister Tony Blair bring their expertise and influence to ensure the project's success.
Spanning an expansive 632,000-acre site, Nusantara dwarfs the current capital, Jakarta, by fourfold. This colossal development opens up endless opportunities for foreign investors across multiple sectors, be it infrastructure, manufacturing, healthcare, or education. The allure of the new capital lies not only in its grand scale but also in the potential for substantial returns on investments.
Indonesia's new capital project is a golden ticket for enterprising investors seeking to expand their foothold in a burgeoning market. With the government's unwavering commitment and an attractive package of incentives, the stage is set for a remarkable journey into the future of Indonesia's economic landscape.