Industrial Park Draft Law: Government Proposes Tax Incentives
JAKARTA, DDTCNews - The government has proposed a range of tax facilities for industrial parks in the deliberations on the Industrial Park Draft Law.
Tri Supondy, Director General of Industrial Resilience, Regional Affairs and International Industrial Access at the Ministry of Industry, said that tax facilities are required to drive the development of industrial parks at the national level in line with the government's targets.
"[The Industrial Park Draft Law] needs to provide for facilities and concessions for the development to become increasingly competitive, one of which is through the granting of various fiscal facilities," he said at a Working Committee meeting on the Industrial Park Draft Law with Commission VII of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian), as quoted on Monday (6/7/2026).
The types of tax facilities proposed include income tax, value added tax (VAT) and/or sales tax on luxury goods (SLTGs), import duty and taxes on imports (pajak dalam rangka impor/PDRI in Indonesian), excise, local taxes and user charges as well as other fiscal facilities.
Tri noted that these various tax facilities would be available to industrial parks that have attained the status of green industrial parks, halal industrial parks or certain industrial parks. In addition, further facilities may be granted based on the location of the industrial parks.
Beyond tax facilities, the government has also proposed various incentives for industrial parks. These include accelerated business permit services, the direct construction facility (kemudahan investasi langsung konstruksi/KLIK in Indonesian) scheme, land acquisition facilitation, provision of visa and residence permit services within industrial parks and the issuance of certificates of origin within industrial parks.
Specifically for green industrial parks, available incentives may include permits for the construction of environmentally friendly technology facilities and participation in green industry certification programmes. For halal industrial parks, incentives include priority halal certification, priority in halal investment promotion and export facilities for halal products.
As for incentives for certain industrial parks, proposals include accelerated spatial planning adjustments, priority in obtaining the right to land, facilities for raw materials access and supply chain continuity as well as priority in investment promotion.
On the other hand, to ensure compliance in the administration of industrial parks, any violation committed by an industrial park company, an entrepreneur within the park or a business entity constructing an industrial park will also be subject to administrative penalties.
The imposition of penalties will be calibrated to the type and severity of the violation, ranging from written warnings, administrative fines, temporary closure, suspension of business permits, through to revocation of business permits.
"Penalties will be applied proportionately to render a deterrent effect whilst at the same time encouraging compliance with applicable provisions," said Tri.
In terms of institutional framework, to support the administration of industrial parks, the establishment of a National Industrial Park Council (Dewan Kawasan Industri Nasional/DKIN in Indonesian), chaired directly by the President, has also been proposed. The council's duties include formulating policies to accelerate the construction of industrial parks and determining measures to resolve cross-sectoral industrial park issues.
In addition, the National Industrial Park Council will also be responsible for formulating strategies to address challenges in industrial park construction and for overseeing the implementation of policies in the industrial park sector.
For information, the Industrial Park Draft Law has been designated as a House initiative and included in the priority legislative programme. The regulation is directed at strengthening competitiveness, developing green industry and comprehensively governing industrial park responsibilities. (dik)
