Govt. Clarifies Facilities and Incentives for Business Actors Operating Within IKN

In order to accelerate the ongoing development of the Capital City of Nusantara (Ibu Kota Nusantara – “IKN”), the Indonesian Government recently issued Regulation of the Government No. 12 of 2023 (“Regulation 12/2023”), which addresses the issuance of business licenses, ease of doing business and various investment facilities and incentives that are available to business actors that engage in business activities within IKN and certain regions of Kalimantan as part of the IKN economic superhub (“Partner Regions”). Regulation 12/2023 also contains a number of provisions that address aspects of supervision and evaluations.[1] However, in order to offer a concise analysis of this regulation, this edition of Indonesian Legal Brief (ILB) contains an overview of the various facilities and incentives that can now be enjoyed by business actors that operate within IKN and Partner Regions. The overview takes in the following specific areas: