CORPORATIONS PERSUADED TO INVEST IN EXCLUSIVE ECONOMIC ZONE

Head of BKPM Franky SIbarani persuaded businesspeople to invest in the Exclusive Economic Zone (KEK). The Government would give their full support in the effort to develop infra structure or in injecting fiscal incentives so to invest in KEK would be attractive. This was disclosed on the occasion of Halal Bihalal among BKPM officials with businesspeople in Jakarta on Monday (3/8).

The Government had their commitment to develop new economic centers through development of KEK. Accordingly BKPM strived to drive investment to that zone. At the moment the Government was completing Government Regulation Plan on KEK which regulated fiscal incentives.

Franky remarked further that in dissecting regulation plan on KEK the Government proposed to give fiscal incentives to investors in KEK in the form of Tx Holiday, Tax Allowance, Tax suspension, free of Added value tax. Hopefully discussion of the RPP would be completed this year so investors investing their capital in KEK could benefit from it.

As planned, the Tax Holiday would be given to certain business lines in their respective fields in KEK, There was discourse that the business line would refer to RIPIN. As with business lines the Government would facilitate Tax Allowance.

Besides the Government would give special treatment to investors in KEK which would reflect their status as Exclusive Economic Zone. One of them was not to put in effect restrictions in importing, i.e. that the goods permitted to be imported was those which (a) not produced at ghome (b) produced at home but the specification was the amount was not sufficient. Furthermore the Government would encourage integrated investment permit in KEK so investors only needed to apply for permit in that zone.

BKPM planned to make MoU with the Governor, Regent/Mayor where there was KEK to delegate permit giving to KEK administrators so investors needed not to walk around to apply for permit.

Today there were 8 KEK Exclusive Zones being designated by the Government, i.e. KEK Sei Mangke in North Sumatra, KEK Tanjung Api in South Sumatra, KEK Tanjung Lesung in Banten, KEK Mandalika in NTB, KEK Maloy Natuta in Trans Kalimantan, East Kalimantan, KEK in Palu Central Sulawesi, KEK Bitung in North Sulawesi, and KEK Morotai in North Maluku. In the next 5 years, the Government planned to develop17 new KEK, including Tourism KEK. (SS)

Business New - August 7, 2015