By : Davina Gunawan )*
President Joko Widodo (Jokowi) formed a Task Force (Satgas) to accelerate investment in the Indonesian National Capital (IKN) project through Presidential Decree (Keppers) No. 25 of 2024 which was ratified on 05 August 2024. A copy which can be seen on the Legal Documentation and Information Network (JDIH) website of the Ministry of State Secretariat on 06 August 2024 states that the Minister of Investment was appointed as Chair of the IKN Investment Acceleration Task Force.
From 2022 to the end of 2024 the Government will spend a budget of IDR 72 trillion from the APBN for IKN development. The government has determined that the composition of the APBN to finance IKN projects is only 20 percent of the total IDR 466.9 trillion. This means that APBN funding for IKN is IDR 90.4 trillion, and the rest the Government will collaborate with business entities and private parties. The total domestic investment entering IKN is IDR 49.6 trillion. This value comes from 32 institutions that carried out groundbreaking from September 2023 to March 2024.
President Director of PT Bina Karya Persero, Boyke Prasetyanto, said that his party would focus on accelerating the rate of investment in IKN Nusantara through the Government and Business Entity Cooperation (KPBU) scheme , because this scheme is considered attractive to investors. According to him, if there is a role for the Government through the PPP scheme, investors will dare to invest their capital in IKN.
Then, the Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said that the Government would again encourage the acceleration of foreign investment into IKN Nusantara after the decision of the Constitutional Court (MK) regarding the dispute over the results of the 2024 Presidential Election (Pilpres). Foreign investment into IKN is not calculated when there is a commitment to invest capital in the new capital area, but is calculated based on the projects being built.
Meanwhile, the Minister of Public Works and Public Housing (PUPR) and Acting Head of the IKN Nusantara Authority (OIKN), Basuki Hadimuljono, said that as many as 60 investors would speed up the process to invest capital in IKN Nusantara. Not only domestic investors, there are also a number of foreign investors whose capital investment process will be accelerated, including those from China and Japan.
In the future, the two foreign investors will invest their capital in the property sector such as housing, hotels and office buildings. Basuki continued that there were around 472 investors who were interested in investing in IKN, but this number was evaluated and selected as many as 220 investors who were worthy of investing in IKN. Meanwhile, the rest were not filtered because they were not included in the investor category.
Furthermore, a number of strategies to attract investment interest in IKN Nusantara have also been carried out by the Government. One of them is by allowing investors to pay in installments the administrative costs of applying for land rights. Basuki Hadimuljono said that this was in accordance with President Jokowi’s mandate as stated in Presidential Regulation (Perpres) no. 75 of 2024 concerning the Acceleration of Development of the Archipelago Capital City. His party will also continue to coordinate intensively with investors and potential investors in IKN to immediately execute their investment plans.
Through this Presidential Decree, the Government will commit to providing incentives and business licensing facilities, as well as providing certainty regarding the term of land rights with Cultivation Rights (HGU) to investors.
Meanwhile, investors who invest their capital in the IKN Nusantara area and its buffer areas are expected to help support the development of Micro, Small and Medium Enterprises (MSMEs).
Main Expert from the Presidential Staff Office, Sudiyarto, said that MSMEs in the East Kalimantan area have great potential to be involved in IKN development. According to him, it is also hoped that the large number of incoming investments can encourage the growth of MSMEs.
Partnerships between large companies and MSMEs receive special attention from the Government. President Jokowi promised to involve local East Kalimantan entrepreneurs more widely to invest in IKN Nusantara. Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Prov. East Kalimantan, Dayang Donna Faroek said that the Government had shown its commitment and seriousness in involving the role of local entrepreneurs in entering various strategic projects in IKN.
Dayang also said that the Acting Head of OIKN, Basuki Hadimuljono, would help make it easier for local entrepreneurs to get involved in building IKN more. According to him, local entrepreneurs from Kab. Penajam Paser Utara needs opportunities supported by Central Government permission to remove various bureaucratic obstacles that have hindered their participation.
For Dayang, there are many investment opportunities in IKN, but entrepreneurs are still waiting for the opportunity given by the government. Therefore, he is optimistic that the Government can provide space for local entrepreneurs to participate in the future of IKN Nusantara.
With the entry of many local and foreign investors into IKN Nusantara, it can improve welfare for the people in the area around IKN. The IKN Nusantara project is considered a long-term strategy for economic equality and national development. Therefore, there is a need for community support for the national strategic project IKN Nusantara in order to realize social justice for all Indonesian people, including the capital city.
)* The author is a contributor to Ruang Baca Nusantara
