Jakarta (VNA) - Indonesia will offer generous incentives to companies investing in a 32 billion USD project to build a new capital city in the country called Nusantara, an official has said.

Bambang Susantono, head of the Nusantara National Capital Authority, revealed the information at an event to introduce the new capital project held in the current capital Jakarta on October 18.

“We will give fiscal and non-fiscal incentives, including a 30-year tax break for investment in infrastructure and public services worth over 10 billion Rp (645,000 USD),” he said.

There will also be a 20-year tax exemption for investment in shopping malls, tourism spots and MIC facilities, he said, adding that the government plans to offer a 350% tax deduction for investment in research and development activities in Nusantara.

In his speech, Indonesian President Joko Widodo said the new capital will be built into a smart city based on forest and natural resources, with green zones accounting for 70% of its total area./.