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ISSUE 6
This geographical shift represents a strategic move to decentralize economic growth and foster development in North Penajam Paser, East Kalimantan. This transformative initiative aims to reduce the strain on Jakarta, promote regional growth, and establish a new centre of economic activity. One particular incentive - the Government-borne Article 21 facility - has profound implications for payroll management. Facilities at Nusantara To support the establishment and growth of businesses in Nusantara, the Government of Nusantara Special Capital City Region (the Government) has introduced several key facilities and incentives: Licensing: Businesses setting up in Nusantara and the islands of Kalimantan (Partner region) must obtain licenses through a simple and rapid Online Single Submission (OSS) system. Certain basic and sectoral licensing requirements exist, such as utilisation of space that suits the spatial layout plan and securing environmental and building approvals. Additionally, businesses are required to submit reports detailing their investment plans. After verifying necessary documents and obtaining approvals, the Government issues a license to commence business operations. Ease of doing business: Businesses are provided with the right of allocation and usage of land, the
right to cultivate, build and manage the business in New Capital. To encourage more individuals to relocate to Nusantara, the Government has comprehensive housing and residential development plans that will enhance the community. Furthermore, foreign workers are provided with stay permits and can be employed in specific positions, with employers exempted from the obligation to provide compensation funds. Investment: The Government provides the business players with both fiscal and non-fiscal incentives to promote the shifting of entities from Jakarta. The fiscal incentives include the following: 1. Deductions of gross income for undertaking certain research and development activities in New Capital or developing specific competency-based human resources. 2.Donation for construction of public/ social facilities in New Capital. 3.Zero Tax on income from the gross turnover of certain micro, small and medium enterprises (MSMEs). 4.Tax exemptions on payroll tax, corporate income tax and Income tax on financial sector activities at the financial centre. 5.Tax relief of value-added tax for delivery or import of certain strategic taxable goods. In addition to these fiscal incentives, non-fiscal incentives include infrastructure facilities that support the
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