Indonesia Goes Big on Nusantara: 30‑Year Tax Breaks and a $32 Billion Dream
Indonesia’s bold move to build a brand‑new capital, Nusantara, has attracted a flurry of investors, thanks to a hefty 30‑year tax holiday and other sweet incentives. According to Bambang Susantono, head of the Nusantara National Capital Authority, the plan comes with a hefty 350 % “super‑tax deduction” for R&D – something the curb offers with a grin compared to other Indonesian cities.
What’s Happening on the Ground?
- Construction of a dam and roads has begun in the former Borneo rainforest periphery.
- Up to 100,000 workers will be on the job next year to hit the August 17, 2024 milestone.
- President Joko Widodo aims to hold an Independence Day celebration in a brand‑new presidential palace on that date.
“This is a lifetime opportunity to build the city,” Susantono declared, promising to soon roll out the new regulations that will make it easier to invest in healthcare, education, entertainment and more.
Private‑Sector Promise‑Underway
The event welcomed the president and a Governor from PT Medikaloka Hermina, who committed to investment in the new capital. Jokowi addressed concerns about the future of Nusantara after his second term ends in 2024, emphasising that the project has flat 93 % parliamentary approval and is fully set to launch.
Despite the surge of excitement, a June survey by the Indonesian Centre for Strategic and International Studies found nearly 59 % of experts still unsure if the project would materialise, citing funding and management uncertainties.
What Investors Should Know
- Large tax incentives: 30‑year tax break, 350 % super‑tax deduction for R&D.
- Government plans to form a business entity to speed up dealings with the private sector.
- Expected sectors: healthcare, education, entertainment.
In short, if you’re hungry for a new playground to grow your business and fancy a role in shaping Indonesia’s next capital, Nusantara is calling your name – and it comes with a sweet, tax‑friendly package to sweeten the deal.
