The Indonesian government has introduced enhanced incentives to attract foreign and domestic investment, with tax reductions for major investments, no import or excise duties, and expedited immigration processes. A government regulation now in place reduces 70 labour, tax, and other laws to help foreign investors enter more industries while simplifying business licensing rules. Businesses that invest in one of the 246 priority sectors will enjoy a 50% corporate income tax (CIT) reduction for investments between IDR100bn ($6.6m) and IDR500bn ($33.3m) for five years and 100% reduction for investments over IDR500bn for between five and 20 years. Businesses meeting certain criteria can also receive tax allowances and additional incentives based on investment type or location. Indonesia hopes SEZs will attract foreign investors and boost industrial activity.
