There will be fiscal and non-fiscal incentives (for the private sector and investors)Jakarta (ANTARA) - Minister of National Development Planning and Head of the National Development Planning Agency Suharso Monoarfa confirmed that a presidential regulation on the provision of incentives for investment in the new capital, Nusantara will be issued soon.
"The presidential regulation will be issued soon, including (a regulation) on (new capital) financing and funding as derivatives (of Law No. 3 of 2022 on National Capital)," Monoarfa informed at the Presidential Palace here on Monday.
It is essential to provide incentives to investors and the private sector to invest in the new capital as the government is targeting to obtain at least 80 percent of the Rp466-trillion budget needed for the new capital’s development through non-state budget sources, he highlighted.
"There will be fiscal and non-fiscal incentives (for the private sector and investors)," the minister affirmed.
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Besides the presidential regulation on investment incentives, the government will also enact regulations after consulting with the legislature to expedite the new capital’s development.
"Other government regulations have been issued, but it must be consulted first with the DPR RI (House of Representatives)," he said.
The government is currently developing basic infrastructures in the new capital, such as facilities for water supply and electricity supply systems and access roads, Monoarfa informed.
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Meanwhile, Minister of Public Works and Public Housing, Basuki Hadimuljono, confirmed that the government will sign the land development contract for the new capital next Friday (July 15, 2022).
He said that the presidential palace, vice presidential palace, the four coordinating ministry offices, the parliament complex, and the constitutional court office will be prioritized during the new capital’s development.
The government will also commence the development of dwellings for at least 200 thousand workers who have been employed for the new capital’s construction next August, Hadimuljono said.
The ongoing basic infrastructure development by the ministry in the new capital will be funded by the state budget, he added.
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Translator: Indra Arief P, Nabil Ihsan
Editor: Fardah Assegaf
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