A senior government official has confirmed that Indonesia will offer investors in its special economic zones ( SEZs ) longer tax exemptions and other fiscal and non-fiscal benefits.  ,
Meanwhile, the government is planning to add four more SEZs to the existing 22 designated economic areas in the country, with a total investment value of 161 trillion rupiah ( US$ 9.9 billion ).
Rizal Edwin, the SEZ National Council’s secretary general, announced on Monday ( Jul 22 ) that investors with a minimum investment of$ 1 trillion rupiah will be exempt from paying a 20-year corporate income tax.
Those who invest a minimum of 500 billion rupiah will be granted a 15-year corporate income tax deduction, while those who invest a$ 100 billion investment will be granted a 10-year corporate income tax deduction.  ,
Another fiscal incentives for SEZs are tax breaks, tax accommodations, value-added tax deductions, tax deductions on luxury merchandise sales and local tax exemptions.  ,
According to Mr Rizal, non-fiscal methods include the president’s assistance in providing services for buyers in the SEZs, such as building usage rights for up to 80 years, ease of access permits and 100 per cent foreign rights.
According to him,” the delivery of these services is to improve Indonesia’s elegance and attractiveness to attract foreign funding in the SEZs,” according to local media app Tempo, as quoted by the local media platform Tempo.
In Indonesia, no all companies are allowed to be 100 per cent owned by foreign buyers. Industries where companies can be completely foreign-owned include those in the oil and gas development services, oil and gas drilling at lake, thermal drilling, the timber business and internet service providers.
With the passage of the Law Regarding Special Economic Zones, Indonesia first started creating SEZs in 2009. These designated areas, which are subject to particular economic regulations, should aim to promote greater economic equality between the various regions that have traditionally been concentrated in Java and Sumatra, in accordance with this law.
Tanjung Lesung, in Java’s Banten province, was the first SEZ to open in Indonesia in 2012. The current 22 SEZs spread throughout Indonesia mainly focus on the industrial, tourism and digital sectors.