North Sumatra announces tax cuts at PIISU 2025

North Sumatra Governor Muhammad Bobby Afif Nasution will provide incentives in the form of tax cuts to businesses in North Sumatra. The incentives are part of efforts to continue increasing investment growth in the province.

"We hope that [North Sumatra's] regional governments will do the same by providing tax incentives to businesses investing in North Sumatra," Bobby said during the 2025 North Sumatra Investment Innovation Week (PIISU) and Indonesia Savings Day at Maimun Palace in Medan City, North Sumatra on Aug. 20, 2025.

"We return the incentives provided in the form of taxable goods," he added

In an example given by the governor, if a regent or mayor provides a Land and Building Tax (BPHTB) cut, the discount will be reimbursed by the North Sumatra Provincial Government in the following fiscal year in the form of taxable goods.

"We are doing this to accelerate investment realization in North Sumatra. This activity can encourage and support economic growth. We hope that all regional heads in North Sumatra will follow suit with the incentives we provide," he said.

Bobby reminded that Indonesia's economic growth target is around 8 percent year-on-year (yoy) in 2025. Of that growth, North Sumatra Province itself is targeting 6.8 to 7.2 percent yoy economic growth. To achieve the target, Rp 53 trillion in investment is needed in North Sumatra. Therefore, the tax cuts are expected to boost North Sumatra's investment value and thus drive its economic growth.

On the same occasion occasion, Bobby distributed 1,000 passbooks to high school students, each with Rp 5,000 in the account balance. This distribution was in commemoration of the Indonesia Savings Day.

"Please collaborate with the North Sumatra Education Office to make the savings movement more innovative. For example, utilizing trash as a channel for savings where it could be exchanged for money, or through various other activities. This way, the savings could be maintained until the students graduate," he explained.

PIISU 2025 featured 82 booths from micro, small, and medium enterprises (MSMEs) across North Sumatra, the launch of the "Si Indah" application (app), cultural performances, a presentation of innovative products, a free halal certification registration program, and more.

Also in attendance were North Sumatra Province Regional Secretary Togap Simangunsong, members of the North Sumatra Regional Leadership Communication Forum (Forkopimda), Consuls General of several countries, a number of local government heads, heads of state-owned enterprises (SOEs) and region-owned enterprises (BUMD), heads of regional government offices in North Sumatra, hundreds of high school students, and other invited guests.