JAKARTA – Indonesia’s government is in early discussions about designating halal industrial areas as special economic zones (SEZs) to attract investors, Afdhal Aliasar, Director of Islamic Economy Development and Halal Industry at the National Islamic Finance and Economy Committee (KNEKS) told Salaam Gateway.
Indonesia has fifteen SEZs and the government is keen to attract more investments through them.
SEZs enjoy certain privileges. In a new regulation signed by President Joko Widodo in February, facilities and ease of customs provided for business entities in the SEZs include the exemption of import duties and they are not subject to taxes in the importation of capital goods in the context of SEZs development. Businesses that make investments in a main activity may also obtain a reduction in corporate income tax on the income received or obtained from the main activity.
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