<![CDATA[Providing tax incentives to attract investment is still one of the strategies relied on by the government, especially in Indonesia. This is realized by providing tax incentives in various Special Economic Zones (SEZ). Although many countries use tax incentives to encourage foreign investment, the actual impact of these tax incentives remains a subject of debate. This research aims to describe the role of tax incentive policies in industrial activities in SEZ, along with the various challenges that arise from implementing these policies. This study used qualitative research methods. Data was collected using literature studies with criteria by theme relevance, objectivity, and source reliability. Then, triangulation was carried out to reduce subjectivity and bias in the research. The research found that tax incentives needed to be more effective in attracting investment in SEZ. Apart from that, there is tension between the tax incentive policies that Indonesia is implementing massively to attract investment. At the same time, the country is also subject to the global minimum tax rate standard of 15%. This research provides recommendations for the government in developing non-tax facilities and implementing expenditure-based tax incentives such as investment allowances and tax credits so that they do not conflict with globally agreed standards. This research is still limited to the challenges of implementing tax incentives in the Indonesian SEZ. Furthermore, research can be carried out to identify how Indonesian SEZs can adapt to the global minimum tax rate standard of 15% and evaluate the impact on investment attractiveness in SEZs after the policy is implemented in Indonesia.]]>
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