Indonesia to build logistics hub on Morotai Island

Indonesian developer PT Jababeka Morotai, a member of PT Jababeka Tbk, is developing a logistics hub (Port & Logistics Center) on Morotai Island in Indonesia.

The port on Morotai Island already exists and only needs to develop into a Logistics Hub by adding various facilities.

The harbour is named Imam Lostari port in Daruba, and the facilities that will be offered later include loading containers, cranes, storage warehouses, and a layover for freight carriers from various countries.

Morotai Island has an area of 1,101.76 ha.

Geographically, Morotai Island is directly facing the Pacific Ocean, and serves as a gateway to America, Australia, New Zealand, and is located nearby Mainland China, Taiwan, Korea, and Japan.

The developer aims for Morotai Island to be the Singapore of Eastern Indonesia.

Morotai Island is also a Special Economic Zone for Tourism and the central government provides fiscal, customs and other incentives for investors in Morotai Island.

For tax incentives, investors will get a free period of 100% income tax based on amount of investment.

  • Investment of IDR 500 billion (US$35.5 million)IDR 2.5 trillion for 7 years.
  • Investment of IDR 2.5IDR 7.5 trillion for 10 years.
  • Investment of IDR 7.5IDR 20 trillion for 15 years.
  • Investing more than IDR 20 trillion for 20 years.

However, there is a transition period of 2 years with a facility of 50%.

Then there is also a mini tax holiday with an investment of IDR 20IDR 100 billion received a facility of 50% for 5 years with a transition period of two years with a facility of 25%.

Jababeka Morotai is also able to help investors with licensing, company establishment and other administrative processes, so that the company can commence operations quickly.

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