New tax, land incentives to woo investors to capital city project

The government has announced incentives including tax holidays and a tax deduction to make its project for a brand-new city to be built in Kalimantan more attractive. In a market sounding for the Nusantara Capital City (IKN) on Tuesday, President Joko “Jokowi” Widodo asked potential investors “to communicate their concerns” should the tax incentives on offer fail to meet their expectations. After the withdrawal of Japan’s Softbank Group in March, experts and businesses have been raising concerns about the continuation of the mega project, as approximately 80 percent of the funding is to come from external investors.