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Appreciate Investor Interest in IKN Nusantara

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By : Putri Dewi Nathania )*

The National Capital City (IKN) of the Archipelago in its development progress has attracted investors to invest their capital. This is known from the Twitter account of the Nusantara Capital Authority (OIKN) which has released information that it is actively offering local and international investors to participate in supporting the development of the archipelago.

Until now there have been 200 letters of intent (LoI) or letters of interest for various investment fields. This of course shows how high the interest of investors to invest in the archipelago.

         LoI recorded 16 for educational facilities, 7 for health facilities, 16 housing, 12  mixed use,  4 offices, 13 utilities, 16 consultants, 23 energy, 4 connectivity, 10 waste management, 21 other infrastructure, three industrial zones, 32 goods and services and 23 technology.

         This news, of course, updates what was previously conveyed by the Head of OIKN Bambang Susanto at a Hearing Meeting (RDP) with Commission XI DPR RI in February 2023. At that time, Bambang said, out of 142 investors, 90 had already sent LoIs.

         He also said that he would follow up on the investor’s interest with various business processes. It could be through the Government Cooperation with Business Entities (PPP) scheme or others.

         Deputy for Funding and Investment at OIKN Agung Wicaksono in a dialogue program on TVRI added that various regulations needed to attract investment had also been issued. Among them, the finance minister’s regulations regarding IKN funding, regarding cooperation between the government and business entities, as well as government regulations for ease of investing in IKN.

         It should also be noted that on various occasions, President Joko Widodo (Jokowi) made various attractive offers for both local and foreign investors who are willing to invest in IKN. The red carpet is contained in Government Regulation Number 12 of 2023 concerning reporting on business licensing, ease of doing business and investment facilities for business actors in IKN.

         PP number 12 of 2023 is divided into 2. The first is land as state property which is managed directly by OIKN. Second, Assets under control (ADP) submitted to the IKN authority in the form of Land Management Rights (HPL).

         OIKN can also give business actors land rights (HAT) on land assets with HPL status. HAT can be in the form of usufructuary rights (HGU), building use rights (HGB) and usufructuary rights.

         The contents of the regulation stated, that based on the considerations referred to, it is necessary to provide a special policy for granting business licenses, ease of doing business and investment facilities to business actors who carry out investments and economic activities and/or finance the construction and development of the Archipelago Capital City and/or partner regions.

         On the previous occasion, the Head of the Archipelago Capital Authority Agency (IKN) Bambang Susantono revealed that the government was preparing three things related to the development of the National Capital City (IKN). So that in order to build IKN cities, they are not only livable but also loved.

         His party wants that in 2024 a comprehensive ecosystem will be formed and also make the city a livable and ready-to-use city.

         Bambang explained, these three things are the draft government regulations (RPP) related to incentives for business actors and investors who will do business in IKN, then the establishment of IKN Authorized Business Entities, and the implementation of market taxes.

         He informed that there would be several fiscal and non-fiscal incentives designed with the Ministry of Investment/BKPM, the Ministry of Finance, Bappenas/PPN, and other stakeholders. So that investors can later invest capital to do business at IKN Nusantara as well as possible.

On a different occasion, Sri Mulyani Indrawati as Minister of Finance (Minister of Finance) said that there are routes that can be used by potential investors to invest in the development project of the State Capital (IKN) in East Kalimantan.

         One of them, investors can enter as shareholders and  the second option, can be as creditors. Investors just have to choose the options provided by the government, which one they think is the most profitable.

         According to Sri Mulyani, the role of investors is very important because IKN development cannot only rely on the state budget. This is because the APBN will only be used for the construction of basic infrastructure such as roads, dams and ports to airports.

The opportunity to invest in IKN and its area is a rare opportunity, so he invites large, micro, small and medium investors in Indonesia to be able to jointly build IKN which until now its development continues.

         The high interest of investors to invest in Indonesia is certainly proof that the Nusantara IKN project has succeeded in getting many investors to play a role in investing in IKN. This certainly needs to be welcomed considering that the transfer of IKN is a program that requires a lot of money.

)* The author is a contributor to the Perkasa Media Institute

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