Indonesia offers incentives for investors in new capital
Indonesia’s President Joko Widodo has approved a new regulation that offers incentives to businesses investing in its new capital Nusantara, including tax holidays of up to 30 years and 95-year land use permits.
President Joko “Jokowi” Widodo inspects the progress on a toll road that will lead to the new capital city of Nusantara in East Kalimantan on February 22.(Photo: Presidential Secretariat's Press Bureau)
Jakarta (VNA) – Indonesia’s President JokoWidodo has approved a ne🍌w regulation that offers incentives to businesses investingin its new capital Nusantara, including tax holidays of up to 30 years and 95-year land use permits.
The new capital, named Nusantara, is located in an area covering 256,142 hectares of land on Kalimantan, Indonesia's second-largest island. According to the regulation, localand foreign companies are entitled to a 100% exemption from corporate incometax if they are registered as taxpayers in Indonesia and invest in severalpriority areas in Nusantara. Companies can enjoy tax holidays of 10-30 years, depending on which sectors they invest in and when they start. Incentives will also be given todeveloping a financial centre in the new capital. Specifically, eligible banks, insurersand Islamic finance companies will enjoy a 100% tax exemption for up to 25 years if they investbetween 2023 and 2035, and 20 years for 2036-2045 period. Otherfinancial services companies, including the capital market, pension funds,venture capital firms and fintech companies, can apply for an 85% taxdeduction. Globalcompanies that move their regional offices to Nusantara are eligible for afull tax exemption for 10 years, followed by a 50% cut for the next 10 years,under some conditions. Indonesia is seeking 80%of the estimated 466 trillion Rp (30 billion USD) needed for the Nusantaradevelopment from public-private partnerships and the private sector, with thestate budget covering the remaining 20%. AgungWicaksono, deputy for financing and investment at the Nusantara Authority, saidit has so far received about 100 letters of intent for investments in the newcapital, half from local investors and the rest from foreign entities,led by Malaysia. Of these,20 entities have entered non-disclosure agreements with the authority, he added./.
The Indonesian government will take firm action against foreign nationals who violate Indonesian laws and norms, Tourism and Creative Economy Minister Sandiaga Salahuddin Uno has said.
Indonesian Minister of Investment Bahlil Lahadalia has said President Joko Widodo instructed ministers to extensively pursue investment in coal-to-dimethyl ether (DME) downstreaming.
Based on the estimated rice production data for 2023 from Indonesia’s Central Statistics Agency (BPS), the country is predicted to experience a rice shortage for nine months, said Director of Food Supply and Price Stabilisation of the National Food Agency (Bapanas) Maino Dwi Hartono.
Indonesia's Minister of Trade Zulkifli Hasan on March 8 signed the 2022 International Coffee Agreement (ICA) at the Secretariat of the International Coffee Organisation (ICO) in London, the United Kingdom.
The Ministry of Commerce reported that imports also rose 18% to 29.9 billion USD during the same period, resulting in a trade surplus of 1.1 billion USD. In May alone, Thailand posted a 4.6 billion USD trade surplus with the US and a 4.1 billion USD trade deficit with China.
The World Bank will provide a 2.1 billion USD financing package for Indonesia, focusing oncreating jobs, stimulating economic growth, and enhancing access to clean energy across the country.
Member states also reviewed progress on six priority areas for 2025, including the development of an underground cable framework, the follow-up agreement to the ASEAN Petroleum Security Agreement (APSA), the launch of the ASEAN Energy Efficiency Database, and the rollout of an investment platform for sustainable building initiatives.
In March, Thai Prime Minister Paetongtarn Shinawatra met with Formula 1 chief Stefano Domenicali and said Thailand would commission a feasibility study into hosting a Grand Prix on a Bangkok street circuit from 2028.
The proposed giant sea wall aligns with bilateral cooperation and has been designated a national priority, considering that several regions in Indonesia are experiencing land subsidence of 10–15 centimetres per year.
International flights were cancelled including Jetstar and Virgin Australia flights to cities across Australia, and flights of Air India, Air New Zealand, Singapore's TigerAir and China's Juneyao Airlines.
The partnership aims to strengthen collaboration in the exploration and exploitation of mineral resources, including gold, copper, and manganese, as well as in the development of steel, aluminum, and renewable energy industries.
The Thai cabinet has approved a seven-year EV bus leasing scheme proposed by the Bangkok Mass Transit Authority (BMTA) for the capital, with an estimated cost of 15.35 billion THB (over 470 million USD).
Aircraft are prohibited from flying below 6,000 metres in the vicinity of the volcano, and should also remain alert to the presence of volcanic ash, which can disrupt flights.
Laos declared the transfer of the press management functions of five key media agencies and associated personnel to the Propaganda and Training Board of the Lao People's Revolutionary Party Central Committee.
Univers said in a statement that the new centre will serve as a hub for innovation, bringing together digital intelligence and climate ambition to accelerate Sarawak's transition toward a low-carbon, tech-enabled economy.
The target is to be completely free from plastic waste within two years. This can only be achieved if all parties implement the initiative with strong discipline.
Indonesia is taking new steps to improve protections for fishery workers, amid concerns over low wages, harsh working conditions, and limited access to social welfare.
The 2025 ASEAN- the Republic of Korea (RoK) Connectivity Forum that opened in Jakarta on June 17 reaffirmed a shared commitment to shaping a connected, resilient future by advancing the ASEAN Connectivity Strategic Plan.
The desk will serve as a service centre providing market intelligence, business licensing guidance, facilitating business cooperation, identifying potential investment projects, and harmonising regulatory policies between the two parties.
Malaysian Prime Minister Anwar Ibrahim noted that the Asia-Pacific region accounted for half of global energy consumption and 60% of greenhouse gas emissions in 2024. Despite this, regional countries, including eight of ten ASEAN member states, remain committed to climate goals, including net-zero emissions and tripling global renewable capacity by 2030.
President Joko “Jokowi” Widodo inspects the progress on a toll road that will lead to the new capital city of Nusantara in East Kalimantan on February 22.(Photo: Presidential Secretariat's Press Bureau) 
