Upgrade your membership plan for the full website experience.
View Membership Plans
May 2, 2023

Indonesia Lays Out Customs Incentives for New Capital City Project

Authored by
placeholder
placeholder
May 2, 2023

Indonesia has recently issued various fiscal and non-fiscal incentives to attract investments to Nusantara, the country’s new capital city. Nusantara is roughly four times the size of the current capital, Jakarta. and is expected to begin operations in 2024. The project presents opportunities for foreign investors in a variety of sectors from smart city development, and maritime infrastructure, to renewable energy. Among the incentives accorded to investors are corporate tax exemptions, tax holidays, personal income tax exemptions for investments in priority projects, hiring of foreign workers, and land rights, among many others. Moreover, under Indonesia’s Government Regulation No. 12/23, the government will also offer exemptions on duties for the import of goods used for the construction and development of Nusantara. In addition, import duty exemptions will be extended for goods and materials used in the construction and development of industries within the new capital city. Among the construction projects eligible for such incentives are electricity plants, toll roads, ports, airports, and clean water projects.

Join the Council to continue reading this article
Enhance your business impact in Southeast Asia: Become a member of the US-ASEAN Business Council and tap into a network of possibilities.
Free Related Articles

Membership Plans

Corporate Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • Business missions to all 10 ASEAN markets which engage governments at the highest levels.
  • Off-the-record roundtables and policy briefings with senior government leaders in ASEAN and the U.S.
  • On-the-ground support for promoting your positions/policy priorities with policy makers.
  • Industry-specific, country-specific, cross-sector and regional advocacy through committees that target their engagement based on member priorities.
  • Advocacy on your behalf in situations where your company should not be directly identified or is unable to be present.

Chairman’s Council

Corporate membership provides general advocacy support, access to all country- and industry-specific updates, and access to most Council events.

  • All Corporate benefits.
  • Assistance with resolving company-specific trade or investment issues through our six regional offices and U.S.-based staff.
  • Develop effective advocacy strategies to impact policy concerns.
  • Identification of, and engagement with appropriate policy influencers to impact policy concerns.
  • Assistance in conducting follow-up after engaging government leaders (can include providing officials with additional materials, setting up meetings with their staff, getting a readout of the government’s reaction to the discussion).
  • Support for developing arguments that will resonate with target stakeholders.
  • Leading and setting the agenda and policy priorities of the Country and Industry Committees.