Finance Ministry Pledges State Budget Support for Knowledge-Based Urban Renewal

Deputy Finance Minister Suahasil Nazara has confirmed that the State Budget (APBN) is ready to act as a primary catalyst for knowledge-based urban renewal, specifically citing the Jakarta Education and Innovation Center initiative. Speaking during a Focus Group Discussion on the project’s design, he stressed that Indonesia must transition from relying on perspiration to innovation. Nazara highlighted the central government’s long-term commitment to education and research, noting the constitutional mandate to allocate 20 percent of the budget to education, which has resulted in total funding of Rp7,667.3 trillion since 2009. To further address low research and development spending, the government is offering a Super Tax Deduction incentive, allowing companies to deduct up to 300 percent of their gross income for R&D activities conducted in Indonesia. For the Jakarta project, the central government will provide programmatic and policy support, while the DKI Jakarta Provincial Government will supply the necessary space, land, and infrastructure.