Government revising rulings on investment incentives in SEZs
Thursday, May 23 2019 - 04:51 AM WIB
The Indonesian government is revising rulings on incentives for investment in the Special Economic Zones (SEZ) as a move to lure more investment in these zones.
The rulings being revised are the Government Regulation (PP) Number 96 in 2015 on Facilities and Incentives in SEZ as well as PP Number 2 in 2011 on SEZ Development.
Secretary of the Coordinating Minister for Economic Affairs Susiwijono Moegiarso said that the revision of the rulings are aimed to attract more investment into the SEZ.
"We provide all economic instruments that are needed. We are revising (the rulings)," he was quoted by Kontan daily as saying.
Among fiscal incentives being offered to investors investing in SEZs are lower tax allowance as well as tax holidays facility, in the range of 20 percent to 100 percent.
In the revision, the government wants the rulings on SEZs do not only regulates fiscal policies, but also non-fiscal issues, he said.
The non-fiscal issues cover various incentives offered by the government for those investing in the SEZs, such as custom service, immigration as well as ruling on the employment of foreign citizens.
The government has created twelve SEZs dispersed from the west to the east of Indonesia, which are supported by infrastructure implementation, provided with special facilities and incentives and ensured by ease of doing business.
The SEZs are designated areas endowed with geo-economic and geo-strategic advantages where special facilities and incentives are provided to attract investment.
The twelve SEZs are Arun Lhokseumawe SEZ, Sei Mangkei, Galang Batang, Tanjung Kelayang, Tanjung Api-Api on Sumatera and Bangka islands, Tanjung Lesung in Banten, Mandalika (Lombok), Maloy Batuta in North Kalimantan, Bitung in North Sulawesi, Palu (Sulawesi), Morotai in Maluku and Sorong in West Papua. (*)