Indonesia to develop single window application to lure investors in special economic zones

In a bid to offer a single-window channel to the investors, Indonesian Finance Minister Sri Mulyani Indrawati on Tuesday informed that the ministry was developing an application system that could lure more domestic and foreign investors. According to a report by Xinhua, the government was planning to set up a single-window mechanism to help foreign investors to do business in the county's special economic zones (KEK). Speaking during a webinar on KEK, Indrawati asserted the application would provide convenience for the investors as it requires one single document.

It is worth noting that the second wave of the coronavirus pandemic has ravaged the country's economy, and forced the big giants to shut down their company due to multiple lockdowns. The country had seen some of the deadliest times when it was recording more than 30,000 cases and over 2,000 fatalities in a day. According to the experts, with the development of a dedicated facility, the government hopes that the special economic zones could add a number of domestic and foreign investments. The single window application would accelerate the recovery of the pandemic-hit economy, said Mulyani Indrawati during the conference. 

"The application system is developed by the Indonesian National Single Window Institution along with the Ministry of Finance's Directorate General of Taxes and Directorate General of Customs and Excise," informed the Indonesian Finance Minister.

At least 129 industries have joined in the special application system

Further, the minister said that the application system would offer business players who are active in the KEKs are expected to be able to get various facilities more easily, Xinhua news agency quoted her as saying. "I believe that the advancement of information and technology in the KEKs can recognise the competitiveness of the expansion of Industry 4.0 in Indonesia, mainly industries based on electronics and automation," added Indonesian Finance Minister. According to Coordinating Minister for Economic Affairs Airlangga Hartarto, at least 129 industries have joined in the special application system in the KEKs to get exclusive facilities after operating there. The minister said that the exclusive facilities mean exemption from income tax, value-added tax, purchase tax on luxury goods, import duty, import tax, and excise.

"As of July, 166 small and large industries have invested in special economic zones and helped in creating nearly 26,000 jobs," said Hartanto. 

(Image: Instagram/Sri Mulyani Indrawati/Pixabay)