Incentives are being distributed by the Indian authorities to entice Thai businesses to invest in Nusantara, the country’s new capital.
At the” Business Forum 2023: Investment Opportunities in Nusantara– Indonesia’s Next Capital City ,” Agung Wicaksono, the lieutenant for finance and investment for the National Capital Authority, announced the opportunities.
The Indonesian Embassy, Indonesia Investment Promotion Centre, and Nusantara National Capital Authority organized the event on Friday.
Nusantara, according to Mr. Wicaksono, may serve as the administrative center of the country and a hub for economic development for both the nation and the rest of Southeast Asia.
He urged Thai traders to work with firms from Japan, Malaysia, and Singapore to develop the town, saying that” we will soon start building government practices and we will make it a wise, sustainable town.”
According to him, Thai owners invested US$ 1.52 billion( roughly 54.2 billion baht ) in about 1,500 projects throughout Indonesia between 2017 and 2022.
27 businesses from Singapore, 25 from Japan, and 19 from Malaysia have all expressed interest in investing in the new capital city.
He stated,” We look forward to welcoming Thai investors in the job.”
On the Borneo area of Indonesia, in the province of East Kalimantan, is Nusantara. On the island of Java, the new money is expected to get four times bigger than Jakarta, which serves as the current cash. The money is expected to be formally opened by the government at some point in the coming year.
According to Mr. Wicaksono, the government is providing incentives to entice international businesses to invest in 12 sectors, including clean energy, telecommunications, transportation, housing, water treatment and management, technology infrastructure, business infrastructure for businesses, health facilities, social and public buildings, education, and a natural industrial zone.
A 350 % tax deduction for investments in research and development is one of the bonuses, along with up to 30 years of tax breaks for funding in specific industries like infrastructure and public service.
According to Narucha Ruchupan, the Board of Investment ( BoI ) of Thailand’s investment adviser, Thai businesses can use their knowledge of these areas to aid in the growth of the new Indonesian capital.