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New capital budget plan to get another Rp 8 trillion this year

Jakarta Globe - March 23, 2023

Arnoldus Kristianus, Jakarta – The Finance Ministry is mulling adding around Rp 8 trillion, or about $531 million, to this year's budget plan for Indonesia's new capital megaproject Nusantara.

"The extra money is because President Joko Widodo has asked us to prepare the land for the investors. That would require land development," Isa Rachmatarwata, the director-general for budgeting at the Finance Ministry, told a recent press briefing in Jakarta, as quoted by Investor Daily.

The government has allotted Rp 23 trillion in the original 2023 budget plan for the Nusantara project.

According to Isa, the Public Housing Ministry has asked for an extra Rp 7 trillion or Rp 8 trillion more on the budget plan. However, there is still a possibility that the Finance Ministry might add even more money to cover other needs for the city's construction.

The president not long ago inked the 2023 government regulation on business licensing and ease of doing business in Nusantara. The regulation aims to facilitate investment opportunities in Nusantara. It also sets a 0-percent final income tax from the gross turnover of certain businesses for micro, small, and medium enterprises (MSMEs).

"This shows that the government sides with MSMEs which are one of the pillars of Indonesia's economy," Investment Minister Bahlil Lahadalia said.

Source: https://jakartaglobe.id/business/new-capital-budget-plan-to-get-another-rp-8-trillion-this-yea