PP 12/2023

Gov. Reg. on Business Permits and Fiscal Incentives in IKN Issued

Redaksi DDTCNews | Rabu, 08 Maret 2023 | 08:10 WIB
Gov. Reg. on Business Permits and Fiscal Incentives in IKN Issued

The front view of a copy of Government Regulation (GR) Number 12 of 2023

JAKARTA, DDTCNews - President Joko Widodo (Jokowi) has issued Government Regulation (Gov. Reg.) Number 12/2023 which stipulates the granting of business permits, ease of doing business and investment facilities for entrepreneurs in Nusantara Capital.

The government explains that the Gov. Reg. has been determined as an effort to accelerate the construction and development of Nusantara Capital (Ibu Kota Nusantara, hereinafter referred to as IKN). Moreover, IKN is designated as a high-priority scale and has strategic values for the national economy.

“This Gov. Reg. aims to provide certainty, greater opportunities and participation to entrepreneurs in the context of accelerating development in IKN,” reads a fragment of Article 2 paragraph (1) of Gov. Reg. 12/2023, quoted on Wednesday (8/3/2023).

To accelerate the development of IKN, the IKN authority determines partner regions based on criteria, detailed spatial planning of IKN and IKN master plans.

Partner Regions are certain zones on the Island of Kalimantan established for the construction and development of the IKN economic Superhub, in collaboration with the IKN authority. The partner regions are determined through the head of the IKN authority.

Further, entrepreneurs conducting business in IKN or business in partner regions are granted business permits, ease of doing business and investment facilities.

Businesses granted business permits, ease of doing business and investment facilities in partner regions will be further regulated in a head of the authority regulation.

Next, the granting of fiscal incentives as the authority of local governments in partner regions is coordinated by the IKN authority with the local governments in the partner regions.

On the other hand, the granting of fiscal incentives under the authority of the central government is coordinated by the IKN authority with the central government.

On a side note, the scope of Gov. Reg. 12/2023 covers business permits, ease of doing business, investment facilities, supervision and evaluation. Signed by the president and Minister of the State Secretariat Pratikno, this Gov. Reg. is effective from 6 March 2023. (rig)

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