By: M. Ofan Ramadhan )*
The development of the Indonesian Capital City (IKN) during the leadership of President Joko Widodo has become a magnet for foreign investors. This project not only aims to distribute Indonesia’s economic center outside Java, but also seeks to attract the attention of various investors from around the world. In recent months, concrete steps have been taken, including groundbreaking by investors from Russia, Australia, and China, signaling their commitment to this project.
Foreign investors are increasingly showing interest in the development of the IKN. Russian investors, for example, have expressed their intention to invest in infrastructure and regional development. Meanwhile, investors from China have also taken similar steps, participating in development projects that are expected to support economic growth in the region. This agreement is a positive signal for the Indonesian economy, especially in creating jobs and increasing global competitiveness.
In the groundbreaking event at IKN on Wednesday (25/9) President Jokowi revealed that the investment made by Russian investor, Magnum Estate, for this residential project reached IDR 300 billion. The development of this resort is expected to provide more choices of quality property for the community. President Jokowi also explained that Magnum Estate Co-founder, Igor Maximov, stated that IKN is the best location he has ever seen. Therefore, he hopes that this investment can show that investment opportunities in IKN are open to all parties.
In this phase VIII groundbreaking, there are at least 3 foreign investors who are making their first direct investment in the IKN. Foreign private investment first entered through the mix-use sector, namely Delonix Bravo Investment from China which will build hotels, apartments, offices, and shopping centers. Then there is the Australian Independent School which will build an International School from PAUD to SMA levels, and PT Magnum Investment Nusantara which will build a residential & commercial area.
Meanwhile, the existence of the IKN as the new capital city in East Kalimantan is expected to reduce the burden on Jakarta which is already very crowded. With the relocation of the center of government, President Jokowi hopes that the IKN can become a new center of sustainable growth. In an effort to attract investors, the government also offers various incentives, including ease of licensing and investment facilities. This is certainly a special attraction for foreign investors who want to contribute to sustainable development.
Furthermore, the development of the IKN is also expected to strengthen the existing infrastructure. With this project, the transportation, energy, and other utility sectors will receive more attention. Strong infrastructure will make it easier for investors to run their businesses, thus creating a healthier ecosystem for business actors. On the other hand, the success of the IKN development will also encourage other investors to participate, creating a positive domino effect for the national economy.
It is important to note that foreign investment is not just about numbers and physical projects. The presence of foreign investors also brings new technologies and best practices that can improve local capacity. This transfer of knowledge is invaluable, as it can help local workers develop the skills needed in modern industries. Therefore, IKN is not just an infrastructure project, but also an opportunity for human resource development in Indonesia.
Meanwhile, Bank Permata Economist, Josua Pardede said the smart city concept proposed by the government in the development of the IKN would certainly be very attractive in the eyes of foreign investors, with the smart city concept offered meaning related to the green economy, renewable energy as an open prospect for investors in the future. However, with the conditions of uncertainty and the global economic slowdown, foreign investors will tend to wait and see to invest their capital in the IKN.
With all the steps taken, the IKN is expected to be an example of development that not only focuses on economic growth, but also on sustainability and public welfare. Seeing the great potential and interest from foreign investors, the development of the IKN in the era of President Jokowi could be the ultimate step in realizing the vision of a better Indonesia in the future. Furthermore, the Indonesian Government continues to be committed to developing the IKN, as reflected in various policies that support investment. Partnerships between the Government and the private sector are the key to the success of the development of the IKN which is also a laboratory for testing the latest technology and innovative solutions.
Overall, the IKN is a symbol of Indonesia’s commitment to move towards a better direction. As foreign investors begin to flock to participate in this project, the hope is that the IKN will not only become a new capital city, but also a center of innovation and growth that will bring long-term benefits to the entire nation. As a country rich in resources and potential, Indonesia under the leadership of President Jokowi is trying to make the most of this moment, creating a conducive environment for investment and sustainable development.
)* The author is an observer of social and economic issues
