IKN Businesses to Enjoy Tax and Free Foreign Worker Fee Exemptions until 2035

In order to accelerate the ongoing development of the Capital City of Nusantara (Ibu Kota Nusantara – “IKN”) as a sustainable global city and a driver of the future economy of Indonesia, the government previously issued Regulation No. 12 of 2023 on the Issuance of Business Licenses, Ease of Doing Business and Investment Facilities for Business Actors in the Capital City of Nusantara, which was subsequently amended by Regulation No. 29 of 2024 (collectively referred to as “Regulation 12/2023”).[1] Broadly speaking, Regulation 12/2023 contains various information on the granting mechanism that can help realize improved ease of doing business, including provisions on the employment of foreign workers and the mechanism for the granting of investment facilities. It should be noted that Regulation 12/2023 was analyzed in the following edition of Indonesian Legal Brief (ILB): “IKN Authority Expands Scope of Investment Facilities for IKN Business Actors.”