The Indonesian government continues to make efforts to stimulate economic growth by attracting foreign investors. In a new policy package, investors are not only allowed to manage special economic zones but also own residential property for income tax discounts of around 20 to 100 percent. To invite more foreigners, the government is evaluating the chances for investors to manage the special economic zones and invite more manufacturers to occupy said zones.
Similarly, this model has been adopted by Vietnam, as they welcome foreigners to manage specific zones with benefits of free trade rules, better infrastructure, and lower tax rates, to further bolster manufacturing and exports.
With hopes of luring investors, chairman of the Investment Coordinating Board (BKPM), Franky Sibarani, reveals that the government is additionally considering plans of reimbursing investors if they build basic infrastructure, like roads.
Approving the new plan, Sany Iskandar, chairman of Industrial Zones Association (HPI) says that it will assure foreign investors with greater legal certainty. In his words, “It would definitely attract investments from many countries.”
Accordingly, Singaporeans and Chinese investors have reportedly expressed their interest in investing and managing such economic zones.