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.
The new Presidential Palace under construction at the country’s new capital Nusantara, known as IKN, in Penajam Paser Utara, East Kalimantan province, Indonesia, Wednesday, March 8, 2023.
Photographer: Rony Zakaria/Bloomberg
The rule takes effect immediately, with those investing early eligible for lower-for-longer tax ...