Balikpapan – The government continues to take concrete steps to encourage economic growth through strategic policies in the Indonesian Capital City (IKN).
One of the main policies is the provision of a 0 percent Final Income Tax (PPh) incentive for Micro, Small, and Medium Enterprises (MSMEs) operating in the new city with a smart city theme in East Kalimantan.
This policy is regulated in the Minister of Finance Regulation (PMK) Number 28 of 2024 and is aimed at strengthening the local economic ecosystem while creating new jobs.
Special Staff of the Head of the IKN Authority for Public Communication, Troy Pantouw, assessed the incentive as a real step by the government in supporting MSMEs.
“The 0 percent Final Income Tax incentive reflects the government’s commitment to strengthening a sustainable local economic ecosystem in the archipelago,” said Troy.
He added that the policy provides a great opportunity for business actors to increase the scale of their business, especially with a turnover limit of up to IDR 50 billion per year which is very competitive compared to other regions.
Head of the Balikpapan City Youth, Sports, and Tourism Agency, Cokorda Ratih Kusuma, also expressed his appreciation for the policy.
According to him, the incentive can be a magnet for business actors who were previously hesitant to invest in the IKN.
“This policy is expected to spur MSMEs to develop more rapidly, while also making the archipelago an inclusive and progressive economic superhub,” he explained.
Not only does it support local businesses, the incentive also opens the door to foreign investment.
Young Expert Tax Counselor of the Directorate General of Taxes, Rumadi, explained that the government offers various tax facilities in the area.
“In addition to the zero percent tax rate, MSMEs in the IKN can also enjoy import duty exemptions and other incentives designed to accelerate economic growth in the region,” he explained.
With these incentives, the IKN is not only a future center of government, but also a new economic epicenter that provides opportunities for MSMEs to develop while contributing to sustainable development.
This strategic step is real evidence of the vision of the 8th President of the Republic of Indonesia, Prabowo Subianto in advancing the national economy. [*]
