DGT: No Income Tax Incentive Applications at IKN in 2025

JAKARTA, DDTCNews — The Directorate General of Taxes (DGT) has recorded that in 2025 not a single entrepreneur applied for income tax incentives at the Nusantara Capital (Ibu Kota Nusantara/IKN in Indonesian).

In 2024, there were at least 7 income tax incentive applications at IKN submitted by taxpayers. All seven applications in question were tax holiday applications for investment in IKN and partner regions.

"These data are based on data on applications and/or notifications submitted by taxpayers via OSS and approved in 2024 and 2025," DGT wrote in the DGT Financial Report 2025, as cited on Friday (31/7/2026).

Income tax incentives at IKN have in fact been offered by the government to investors since 2024 through Government Regulation (Gov. Reg.) No. 12/2023 and Minister of Finance Regulation (MoF Reg.) No. 28/2024.

Several incentives are on offer. First, a tax holiday in the form of a 100% reduction in corporate income tax for 10 to 30 years for taxpayers investing in IKN.

Second, a tax holiday in the form of an 85% and 100% reduction in corporate income tax for 20 to 25 years for taxpayers conducting financial sector business activities at the IKN financial centre.

Third, a tax holiday in the form of a 100% reduction in corporate income tax for 10 years and a 50% reduction for the subsequent 10 years for entrepreneurs establishing or relocating their head office or regional office to IKN.

Fourth, a vocational supertax deduction in the form of a 250% reduction in gross income from the costs of education and training activities at IKN.

Fifth, a research and development supertax deduction in the form of a 350% reduction in gross income from the costs of research and development activities at IKN.

Sixth, an IKN donation supertax deduction in the form of a 200% reduction in gross income in respect of donations and costs for the construction of public facilities, social facilities and other non-profit facilities at IKN. (rig)