Fiscal and non-fiscal incentives can be provided to increase investment attractiveness and superior talent. Among (the incentives are) related to taxation, relocation support, liveable city facilities, and infrastructure
Jakarta (ANTARA) – The government’s National Capital City Master Plan outlines several incentives for young and talented individuals to encourage them to come, settle, and work, or open a business in the national capital (IKN) area.
“Fiscal and non-fiscal incentives can be provided to increase investment attractiveness and superior talent. Among (the incentives are) related to taxation, relocation support, liveable city facilities, and infrastructure,” Appendix II of Law Number 3 of 2022 concerning Capital City states, according to a statement released here on Monday.
Other incentives include access to affordable land and housing, ease of licensing, ease of procurement of goods and services, ease of export and import, and support for market creation for new items produced by new economic clusters.
Various incentives will also be provided to assist government and business entity cooperation schemes as well to reduce the risk from high capital expenditure investments for several flagship projects.
These incentives are expected to help make the new capital city a competitive superhub or economic center that attracts superior talent, especially from the younger generation. It aims to encourage them to come, settle, and work, or start a business in the city and promote sustainable development in the capital city and East Kalimantan province.
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Earlier, the Capital City Bill was ratified as Law Number 3 of 2022 after it was signed by President Joko Widodo.
On January 18, 2022, the House of Representatives had agreed to officiate the bill during its 13th plenary meeting.
The government has been preparing to build its new capital city in the Sepaku area, bordering North Penajam Paser and Kutai Kartanegara districts, East Kalimantan.
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The Nusantara special regional government, which is referred to asthe Capital Authority , is similar to a ministry. It has been tasked with preparing, developing, and transferring the capital city, as well as budgeting.
The special regional government will govern the new capital area and will have the same powers as a provincial government.
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