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 new 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.
Total trade between Indonesia and New Zealand in the first half of 2025 reached 963.23 million USD, an increase of 21.56% compared to 792.39 million USD in the same period last year. Of this amount, Indonesia's exports to New Zealand totaled 374.89 million USD, while imports 588.35 million USD
Malaysia, as ASEAN 2025 Chair, marked the bloc’s 58th founding anniversary on August 8 with a vibrant celebration in Cyberjaya, blending an official ceremony with a colorful cultural festival.
Vietnam plays an important role in Southeast Asia’s economic growth and is a key partner of her country in realising the shared vision of a peaceful, stable, and prosperous region, said Robyn Mudie, First Assistant Secretary of Office of Southeast Asia (OSA) – Southeast Asia Regional and Mainland Division at Australia’s Department of Foreign Affairs and Trade (DFAT).
The 2025 ASEAN Business Community Development (ABCD) Forum, themed “Empowering ASEAN's Next Leap: Digital, Sustainable & Entrepreneurial Transformation” brought together ministers, CEOs, and top industry experts to discuss key regional economic priorities.
The DES Ministry will seek cooperation from social media platforms to prevent the spread of fake news and monitor accounts related to such activities, he told reporters after chairing a meeting of the newly established Anti-Fake News Centre (AFNC).
The Joint Standing Committee on Commerce, Industry and Banking identified the US tariff reduction as a significant driver behind the improved economic outlook for Thailand.
Financial institutions and financial technology (fintech) players are intensifying their focus on expanding across the Association of Southeast Asian Nations (ASEAN), adopting tailored strategies to strengthen their presence in the region’s digital financial services landscape.
Featuring a permanent exhibition area, the ASEAN Hall will function both as a cultural showcase and as a dynamic venue for ASEAN-related events and programmes. Its inauguration on ASEAN Day added symbolic weight, marking a fresh milestone in ASEAN–RoK relations.
Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
The Indonesian Government is determined to seize opportunities to enhance the competitiveness of national agricultural products, an official has said, adding that it always strives to promote exports at the highest possible level, based on a mutually beneficial foundation.
Finance Minister Pichai Chunhavajira has outlined a six-point strategy to promote innovation, support small and medium-sized enterprises (SMEs), and push for Thailand's removal from the US Trade Representative (USTR)’s special 301 Watch List regarding intellectual property rights protection among trading partners.
Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
The consumer index of the University of the Thai Chamber of Commerce (UTCC), fell to 51.7 in July from 52.7 in the previous month. The sluggish economy and the trade war, as well as high living costs, continue to undermine confidence, the university said.
Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
The 30-storey tower crumbled seconds after a 7.7-magnitude earthquake hit neighbouring Myanmar on March 28. The partially built high-rise, meant to house the State Audit Office (SAO), was the only building in Thailand to collapse, killing 89 people on the site, mostly construction workers.
Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realise its ambition of becoming a global EV manufacturing hub.
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) 
