• • Applicable to: Companies investing in “pioneer industries” within the special economic zones
  • Exemption Criteria (Tiered based on investment amount):

Note: Companies must meet conditions such as local registration in Indonesia and timely initiation of investments.

✅ Duty-Free Imports

• Capital Goods Imports:

1. Equipment for special zone construction/development: Exemption from import duties and taxes
2. Production Raw Materials Imports
3. Suspension of import duties
4. Exemption from excise tax, value-added tax (VAT), luxury sales tax, and import income tax

✅VAT (PPN) & Luxury Tax (PPnBM) Exemption

Scenarios for exemption:

• Transactions of goods between special zone companies
• Import of specific goods into the special zone
• Import of consumer goods for tourist areas
• Leasing services for land/buildings within the zone
• Cross-border services used within the zone

✅ Export Tariff Incentives

• Goods exported to non-bonded areas in Indonesia with local content ≥ 40%: 0% import duty

✅ Local Tax Exemptions

• Land and Building Tax: 50%-100% exemption
• Local Fees and Rights Acquisition Tax: Eligible for application of exemptions

II. Application Conditions

III. Four-Step Application Process

1. Eligibility Verification
   • Check if the company’s registration location, industry, and licenses meet the requirements
2. Online Application
   • Submit materials through the OSS system or the Special Zone Management Authority
   • Documents required: Investment plan, company legal documents, tax application form
3. Review and Approval
   • Relevant departments assess and issue a tax incentive letter
4. Compliance Maintenance
   • Regular submission of business reports and continuous adherence to special zone regulations

Policy Basis: Government Regulation No. 40 of 2021, Special Economic Zone Law No. 17 of 2009, and relevant regulations from the Ministry of Finance