Number : 062/BPST/EKS/OP/III/2023 Palu, March 20, 2023

Attachment : 1 Bundle
Subject : Reply letter Application for an Investment Mechanism in the SEZ of Palu

Dear Ibu Nurbaya,

With reference to your letter of March 15, 2023 Please find our answers regarding to your queries
below:
1. The needs of all these activities require a land area of 100 hectares, can it be available?
Yes, its available, but we have to re check again
2. If the Land Area is available, is the location point based on the Master Plan?
Yes of course, it will base on the Master Plan
3. Is there land use cooperation?
Please explain to us further the meaning of “land use cooperation”
4. For the planned load growth of power requirements in the Palu SEZ area, how many Tenants are
Set?
Currently 7 (seven) tenants fully operated in KEK, others still not operating or developing (land
owners only)
5. What are the licensing mechanisms in the Palu KEK?
I will be attached the mechanism along with this letter
6. What are the facilities for us in the SEZ area of Palu?
Please find the facilities on the attachment
7. What is the support from the developer/manager of the Palu SEZ, and what is the support from
the Palu City Government for this investment?
PT BPST together with the KEK-Administrator will assist you with the administration process,
Palu City and Central Sulawesi Province as KEK – share holder will monitor the tenants project
and support to build infrastructure around KEK.
Thank You.

PT. Bangun Palu Sulawesi Tengah

Yosafat Pandu Bagaskoro

Operational Director

 Fiscal Incentives
NO SUBJECT INCENTIVES/FACILITIES
• Tax Holiday 100% for Primary Activities. Duration of the facility depending on value of investment
• Tax Allowance for other than Primary Activities and for Primary Activities that is not eligible to get Tax Holiday facility
1. CORPORATE INCOME TAX (PPh) • Income Tax is not collected for the procurement sales/sales/rental of land and/or building in SEZ
• Foreigners who work in SEZs with certain skills can be given the facility of being subject to income tax only on income received or
earned from Indonesia for 4 years
VAT is not collected for the delivery of certain Taxable Goods and certain Intangible Taxable Goods from Other Places within the
2. VALUE ADDED TAX (PPN)
Customs Area (TLDDP).

3. SALES TAX ON LUXURY GOODS Delivery of Taxable Goods and/or Taxable services originating from maintenance, repair, and overhaul (MRO) Tenants not collected

Exemption of import duty and import tax (PDRI) not collected for:
4. CUSTOMS AND EXCISE • import of capital goods
• import consumer goods in the Tourism SEZ
DEFERRED IMPORT • Deferred import duties and import tax not collected for tenants who have completed construction/development
5.
DUTIES • A tariff of 0% import duty is applied for finished goods which have 40% of local content (TKDN)
Exempt from excise for raw materials or auxiliary materials that are used to produced finished goods which are not
6. EXCISE
excisable goods
7. LOCAL TAX Reduction of local tax and / or local retribution by 50% - 100%
• Prohibited items: prohibited for export / import
8. GOODS TRAFFIC
• Restricted items: Imports of goods to SEZ have not been subject to restrictions

SPECIAL FACILITIES FOR • Stores that are located within Tourism SEZs can participate in the VAT refund scheme for foreign passport holders
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TOURISM SEZs • Exemption for Sales Tax on Luxury Goods can be granted for the purchase of a residential home or residence in the Tourism SEZ

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 Non-Fiscal Incentives
NO. SUBJECT
1. NO NEGATIVE LIST
2. IMPORT LIMITATION IS NOT APPLIED
3. EASE OF DOING BUSINESS FOR PERMIT & LICENSING
4 FOREIGN PROPERTY OWNERSHIP IN TOURISM SEZ
5 SPECIAL REGULATION FOR LABOUR AND EMPLOYMENT
6 SIMPLE IMMIGRATION FORMALITIES
7 EASINESS FOR LAND TITLING PROCEDURES
8 INTEGRATED INFRASTRUCTURE SUPPORT FROM GOVERNMENT
9 ENVIRONMENTAL CONVENIENCE
10 OTHER INCENTIVES AND FACILITIES
Incentives and Facilities for Investment
in SEZs
The government widely gives support with
fiscal and non-fiscal incentives such as tax h
oliday, tax allowance, ease of custom
services, immigration, labor, land and
property access.
Through Online Single Submission
investors can start their business almost
immediately in SEZs. As required the
government will support business in SEZs
with necessary infrastructure.
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