Tax incentives continue to be a favoured instrument used by the Indonesian government to attract investors, especially in Indonesia’s new capital, Nusantara. These incentives result in low to zero income tax burdens. However, as a G20 member, Indonesia is committed to implementing the Global Minimum Tax (GMT). This commitment to the GMT poses new challenges when the applied incentives result in tax burdens below 15%. This article discusses the urgency, challenges, and sustainability of income tax incentive policies in the new capital in the context of the concurrent implementation of the GMT. Utilizing qualitative methods, this research was based on data collection through a literature review, document analysis, and interviews with key informants. The findings suggest that the Indonesian government considers it necessary to implement incentives for investors, particularly in the new capital, Nusantara, to provide legal certainty. The government faces challenges in formulating policies, particularly related to the complexity of interactions among interested parties. Tax incentive policies will be applied while the government awaits global developments related to the GMT. The government is also considering redesigning tax incentives after the official implementation of the GMT, potentially introducing adjustments in the form of Qualified Refundable Tax Credits (QRTC) and Marketable Transferable Tax Credits (MTTC).