Incentives to invest in Nusantara most attractive in Indonesia: OIKN

Jakarta (ANTARA) - The Nusantara Capital City Authority (OIKN) stated that incentives offered by the government to invest in Nusantara, East Kalimantan, are currently the most attractive in Indonesia.

"Nusantara, in terms of investment incentives, is now the most attractive in Indonesia. There has never been such an attractive regulation in Indonesia, namely the tax holidays and the super deduction tax," OIKN Deputy for Funding and Investment Agung Wicaksono stated during an online discussion here on Monday.

He explained that the government will provide tax reductions of 200-350 percent on gross income for investors who build roads and schools in Nusantara. In addition to land utilization rights, the government offers investors 80 years for The Right of Building (HGB) and 95 years for The Right of Exploitation (HGU), and these can be extended once if needed.

"But how does the state control these? The state remains present in Nusantara (development). For example, the investors own HGB for the period of 80 years, but the HGB scheme is part of the Management Rights on Land (HPL) where HPL is in the hands of OIKN," he explained.

According to Wicaksono, investors will have the land utilization rights, but the HPL still lies in the hands of OIKN.

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"HGU is the same, and even though the period is 95 years, the HPL is still within OIKN. This is one way we control it, so that sovereignty remains in the hands of the government through OIKN," he stated.

However, Wicaksono said that his side strives to offer convenience to investors, especially domestic investors who are the first to invest. The government's tax incentives aim to encourage various parties to participate in building Nusantara, considering the huge funding need to develop the new capital.