Indonesia is offering long-term tax holidays and other incentives to attract investment in high-tech sectors such as data centres, cloud services, and AI through its Special Economic Zones (KEK).

The government said it aims to encourage substantial, long-term investment in Indonesia’s digital ecosystem.

It is offering incentives such as tax exemptions of up to 20 years, relief from VAT and import duties, and reductions in regional taxes, according to Kontan.

Officials from the National Council for Special Economic Zones highlighted efforts to provide legal certainty and streamline permits for foreign investors, including flexible foreign labour policies and 100% foreign ownership within the zones.

The government is positioning Nongsa Digital Park in Batam as a hub for digital and data centre industries and is prioritising infrastructure to support new projects.

Indonesia hopes the strategy will strengthen its competitiveness in attracting high-tech investment across the region.

Featured image credit: Edited by Fintech News Indonesia, based on image by pranavkr and bluefish_ds via Freepik