Indonesian Political, Business & Finance News

Zero Applications for IKN Tax Holiday Incentives in 2025, Down from Seven in 2024

| Source: CNBC Translated from Indonesian | Economy
Zero Applications for IKN Tax Holiday Incentives in 2025, Down from Seven in 2024
Image: CNBC

Jakarta, CNBC Indonesia – The financial report of the Directorate General of Taxes (DJP) at the Ministry of Finance shows that not a single investor has applied for the tax holiday facility for capital investment in Nusantara Capital City (IKN) throughout 2025.

In fact, the government is offering corporate income tax exemption incentives of up to 100% to boost the investment appeal of the area.

“The government provides tax and customs facilities in IKN and/or Partner Areas as regulated in Government Regulation Number 12 of 2023 and Minister of Finance Regulation Number 28 of 2024,” the DJP report stated, quoted on Thursday (30/7/2026).

The audited financial report revealed that the number of applications for the Tax Holiday for Capital Investment in IKN and Partner Areas fell sharply from seven applications in 2024 to zero in 2025.

The government is in fact offering the longest tax holiday of up to 30 tax years for the infrastructure and public services sector for investments made during the 2023–2030 period.

The types of facilities offered are as follows:

  1. Corporate Income Tax Reduction Facility for Domestic Corporate Taxpayers (Tax Holiday for Capital Investment in IKN and Partner Areas). Taxpayers making capital investments in IKN and/or Partner Areas are granted a corporate income tax reduction of 100% (one hundred per cent) for a certain period.

  2. Income Tax Facility for Financial Sector Activities at the Nusantara Capital Financial Center (Tax Holiday FC IKN). Taxpayers conducting business activities in the financial sector at the IKN Financial Center are granted a corporate income tax reduction of:

  1. 100% (one hundred per cent) for banking, insurance and sharia financial business activities;

  2. 85% (eighty-five per cent) for business activities in:

  1. Capital markets, derivative finance and carbon exchanges;

  2. Pension funds;

  3. Financing;

  4. Venture capital;

  5. Financial sector technology innovation;

  6. Guarantee;

  7. International commodity trading;

  8. Bullion;

  9. Trust management;

  10. Financial instrument management (special purpose vehicle);

  11. Financial conglomerate holding companies;

  12. Financial market infrastructure;

  13. Money markets, foreign exchange markets and derivative transaction funds;

  14. Payment system service providers;

  15. Other financial services.

The duration of the facility is as follows:

  1. 25 (twenty-five) tax years for capital investments made from 2023 to 2035;

  2. 20 (twenty) tax years for capital investments made from 2036 to 2045.

  1. Corporate Income Tax Reduction Facility for the Establishment and/or Relocation of Head Offices and/or Regional Offices (Tax Holiday HQ IKN). A corporate income tax reduction is granted of:

  1. 100% (one hundred per cent) for 10 (ten) tax years; and

  2. 50% (fifty per cent) for the following 10 (ten) tax years.

  1. Gross Income Reduction Facility for Vocational Work, Apprenticeship and/or Learning Activities for Competency-Based Human Resource Development (Super Tax Deduction IKN Vocational). A gross income reduction facility of up to 250% (two hundred and fifty per cent), comprising:

  1. A gross income reduction of 100% (one hundred per cent) of the costs incurred; and

  2. An additional gross income reduction of up to 150% (one hundred and fifty per cent) of the costs incurred. The facility applies to costs charged up to 2035.

  1. Gross Income Reduction Facility for Certain Research and Development Activities (Super Tax Deduction IKN R&D). Taxpayers with a place of residence and/or business premises conducting certain Research and Development activities in IKN are granted an additional gross income reduction of up to 350% (three hundred and fifty per cent).

  2. Gross Income Reduction Facility for Contributions and/or Costs of Building Public Facilities, Social Facilities and/or Other Non-Profit Facilities (Super Tax Deduction IKN Contributions). Domestic taxpayers making contributions and/or paying for the construction of public facilities, social facilities and/or other non-profit facilities in the IKN area are granted a gross income reduction facility of up to 200% (two hundred per cent).

Note:

  • Data is based on applications and/or notifications submitted by taxpayers through the OSS system and approved in 2024 and 2025.

  • One taxpayer may receive more than one decision or approval notification.

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