The Nusantara Capital City Authority (OIKN) in Indonesia provides tax incentive policies for companies investing in the new capital, mainly divided into two categories: tax holiday and super tax deduction. The OIKN Deputy for Financing and Investment explained that the tax exemption policy covers reductions in Value Added Tax (PPN) and Income Tax (PPh), valid for up to 30 years, with a threshold of a minimum investment of IDR 10 billion. In addition, companies operating in the new capital's financial center area, as well as those relocating their headquarters to the new capital, are also eligible for this tax incentive.
He stated that tax exemptions are specifically divided into three categories: first, all companies investing in the new capital with an investment of no less than IDR 10 billion can enjoy a 30-year VAT and income tax reduction; second, companies establishing operations in the financial center area can receive corresponding tax facilities; third, companies relocating their corporate headquarters to the new capital are also included in the incentive scope. Another policy is the super tax deduction, which achieves tax relief by reducing gross income. Unlike in ordinary areas where corporate social responsibility (CSR) donations do not qualify for tax incentives, donations made in the new capital can receive a tax deduction of up to 200%.
This means that companies making charitable donations in the new capital not only fulfill social responsibilities but also significantly reduce their tax burden. Additionally, he revealed that OIKN is still studying financing schemes for new capital development, including the possibility of issuing local bonds, and the relevant financing models are still being discussed with local partners. Overall, through combined tax incentive policies, the new capital strives to attract corporate investment, financial institution presence, and corporate headquarters relocation, providing policy support for new capital construction and industrial agglomeration.
