Indonesia is developing a new capital city, Ibu Kota Nusantara (IKN), as part of its 2045 economic strategy to promote inclusive growth. Accordingly, the Government are focusing on establishing economic hubs and relocating government offices over the next 10 years, followed by urban growth and positioning IKN as a leading Foreign Direct Investment (FDI) destination.
To attract the necessary funding, the Government are and will be partnering with domestic and foreign investors, facilitated through Government Regulation No. 12 of 2023 (GR 12/2023). This regulation simplifies the process for obtaining business licenses and offers various incentives for investors in IKN, including foreign investors, such as exemptions from foreign ownership restrictions, tax benefits, and other advantages. These measures aim to create a supportive environment for foreign investors, though all business actors must first secure relevant licenses from the IKN Authority.
Read more about the key investment incentives for foreign investors in IKN through the link below and stay connected for the upcoming ALTA Insight.
