President Joko Widodo established the Kura Kura Special Economic Zone via Government Regulation Number 23 of 2023, signed on 05 April 2023.
The Kura Kura SEZ comprises 498 hectares on Serangan Island that will now be dedicated to tourism and creative enterprises intended to accelerate the development of Indonesia’s economy and create new employment opportunities.
According to the Council for Special Economic Zones, the decision to establish the SEZ is based on the suitability of the location and recommendations made by PT Bali Turtle Development. Plans include the development of a marina with an integrated resort, hotels and resorts, commercial and mixed-use, a Wellness Center, and an educational and technological park.
Kompas.com reports that the Kura Kura SEZ will realize an investment with a total value of Rp. 104.4 trillion will generate 35,036 direct jobs and another 64,817 indirect employment positions. When fully operational in 2052, the Kura Kura SEZ will contribute US$ 31.8 billion in foreign exchange to the Indonesian economy.
The Kura Kura SEZ has commitments in hand from investors to create a cultural park, a luxury mall, an exclusive place of higher learning, an intercultural school, and a marina complex.
Beritabali.com reports that among the incentives offered to investors are also an income (PPH) tax holidays for investors in the Kura Kura SEZ; the Government also promises other facilities and incentives that include an exemption from value-added taxes (PPN), exclusion from luxury goods Tax (PPnBM), and exemption from import duties and taxes.
Other incentives promised to investors in the Kura Kura SEZ to include facilitating the movement of goods, easing labor regulations, immigration rule relaxation, assistance in obtaining licenses and permits, and zoning exemptions.
The President Director of Kura Kura Bali, Tuti Hadiputranto, explained on BeritaBali.com that the tax-free facilities are intended to stimulate investment and economic development at the project. “We thank the Government for granting a Special Economic Zone status to Kura Kura Bali that will provide many special facilities to investors. These facilities include a 10-year income tax holiday (PPH) for projects valued between Rp. 100 billion and Rp 500 billion,” said Tuti.
The income tax holiday will be linked to the size of an investment, with large investments able to access a tax holiday period of up to 20 years.
Tuti told the press that the Kura Kura SEZ would feature leading educational institutions, medical and wellness facilities, and an international standard marina. Adding: “Now foreign yachts stop in Singapore, Thailand, or Darwin; in the future, these yachts will come to Bali.
The creation of the Kura Kura Bali SEZ is part of an Economic Map for the Economic Transformation of Bali (Peta Jalan Transformasi Ekonomi Kerthi Bali) created by the National Planning Agency (Bappenas) and the Provincial Government of Bali that President Joko Widodo launched in December of 2021.