Govt mulling special incentives for special economic zones

Jakarta (ANTARA News) - The Finance Ministry is considering granting incentives to investors wishing to invest in special economic zones (SEZs), acting head of the ministry`s fiscal policy board Bambang Brodjonegoro said.

"This will be a combination of the existing incentives we are developing now. This will be applied to SEZs and there will be special treatment," he said here on Friday.

The taxation incentives would resemble import duty-free facilities for capital goods but the period of the two kinds of facilities would be different, he said.

"For instance, the import duty-free facilities for capital goods within the framework of investment normally cover two years. All are the same, except the period of incentives for SEZs which will cover more than two years. So there will be difference between incentives within and outside SEZs," he said.

Therefore, he said the integrated tourism-based Tanjung Lesung economic zone in Padeglang district, Banten, would be different from the palm oil and chemical-based Sei Mangke economic zone in Simalungun district, North Sumatra.

The government plans to develop at least five SEZs through 2014 in a bid to boost growth in the regional economies and improve the livelihoods of the local residents.

The other regions to be developed into SEZs include Mandalika in Central Lombok district, West Nusa Tenggara, and Bitung in North Sulawesi.

Bambang said investors could benefit from the combination of tax-and import-duty-free facilities in Tanjung Lesung to develop hotels and other tourism facilities.