- Broadly speaking, the Draft Government Regulation (Rancangan Peraturan Pemerintah – “RPP”) to Law No. 11 of 2020 on the Job Creation Law for Special Economic Zones (Kawasan Ekonomi Khusus – “KEK”) comprises 163 articles, which are divided into the following 17 chapters: 1) General Provisions; 2) Location, Criteria and Business Activities; 3) Proposals for the Establishment of KEK; 4) Designation of KEK; 5) Development and Operations of KEK; 6) KEK Institutions; 7) Management of KEK; 8) Facilities and Ease Within KEK; 9) Facilities and Ease of Taxation, Customs and Excise; 10) Facilities and Ease of the Traffic of Goods; 11) Facilities and Ease of Employment; 12) Facilities and Ease of Immigration; 13) Facilities and Ease of Land and Spatial Planning; 14) Facilities and Ease of Business Licensing; 15) Other Facilities and Ease; 16) Transitional Provisions; and 17) Closing Provisions.
- The organization of KEK encompasses the following aspects: 1) Location, criteria and business activities; 2) Proposals for the establishment of KEK; 3) Designation of KEK; 4) Development and operations of KEK; 5) KEK institutions; and 6) Management of KEK.
- Moreover, in order to carry out business activities within KEK, business entities and/or businesses will be granted facilities and relaxations relating to the following areas: 1) Taxation, customs and excise; 2) Traffic of goods; 3) Employment; 4) Immigration; 5) Land and spatial planning; 6) Business licensing; and 7) Other facilities and easiness.
- The RPP is currently being deliberated by the government and thus further changes may be introduced. The RPP can be accessed here.
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