The population is still small, entrepreneurs need incentives to build malls in the Nusanrara capital city

Holiday Ayo - General Chair of the Indonesian Shopping Center Management Association (APPBI) Alphonzus Widjaja said that the establishment of a mall in the Indonesian Capital City (IKN) must be accompanied by capital incentives so that the mall can be established there.
This is because the population in IKN is still small, it is feared that the number of visitors to the mall will also be low.
“The population in IKN is still not large, so light capital is needed to help mall managers who have to bear quite heavy burdens in IKN," he said as quoted by kompas.com, Tuesday (30/7).
According to Alphonzus, building a mall is different from building an office. This is because the lack of population will make the number of visits to the mall small which will ultimately make the transaction value at the mall minimal.
“Shopping centers need customers, what does needing customers mean? Shopping centers need population, they need residents. So I think maybe currently in IKN the population is not large, so I think building this shopping center will certainly have its own challenges," he explained.
“Because for a shopping center to be able to run its business it needs consumers, it needs population. So I think maybe for the first stage at IKN, maybe the shopping center won't be too big at first, the size will be small and so on. But the point is that shopping centers need population. Meanwhile in IKN the population is still not large," he continued.
For your information, the IKN Authority has provided various incentives to pioneer investors in IKN.
These include investment tax holiday incentives, PPh facilities at the IKN Financial Center, Vocational Superdeduction, and reductions in PPh on land and building rights.
This incentive is also stated in PMK Number 28 of 2024 issued by the Ministry of Finance (Kemenkeu).








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