In the Era of Prabowo-Gibran Government, Various Countries Open the Way for Investment in IKN
By: David Falih Hansa)*
The Indonesian Capital City (IKN) continues to attract international attention as a development project that represents the future of Indonesia. Not only is it a new center of government, this city, designed with a sustainable concept and smart technology, opens up great opportunities for foreign investment.
From Russia to the United Arab Emirates, countries are beginning to respond with concrete steps to strengthen their involvement in the development of the new smart city in East Kalimantan.
Recently, the IKN Authority received a visit from a delegation from Russia facilitated by the Trade Representation of the Russian Federation in the Republic of Indonesia. The meeting discussed various cooperation opportunities, including the retail sector, where leading Russian companies such as Magnit showed great interest.
Head of the IKN Authority, Basuki Hadimuljono, explained that the Russian delegation wanted to learn more about development progress and potential cooperation. Significant development progress and attractive incentives are the main attractions for the country.
So far, the government in the Prabowo-Gibran era has continued to oversee the investment policies implemented in the IKN with a design that is able to provide maximum convenience for investors.
With the support of regulations such as Government Regulation Number 29 of 2024, both local and foreign business actors can enjoy easy licensing and various other incentives. This is intended to encourage private participation in accelerating the development of the Indonesian Capital City.
Apart from Russia, neighboring country Malaysia has also shown enthusiasm for the potential offered by IKN. The Sabah delegation, led by the Minister of Industrial Development and Entrepreneurship of Sabah State, YB Datuk Phoong Jin Zhe, made a direct visit to the construction site.
During the visit, the group saw facilities such as the Nusantara Command Center in the Construction Workers’ Housing and various ongoing infrastructure projects. It is not impossible that the existence of the IKN itself is a very strategic opportunity to further strengthen trade relations between regions, including Sabah and East Kalimantan (Kaltim).
The Sabah delegation also saw great opportunities in the property sector and cross-border investment that could provide economic benefits to both regions. The Consul General of the Republic of Indonesia in Kinabalu, Rafail Walangitan, said that the visit was not only to understand the physical development of the IKN, but also to explore cooperation in various sectors, including trade and tourism. This effort is expected to strengthen the bilateral relations that have been well established so far.
Not only neighboring countries, the United Arab Emirates (UAE) has become one of Indonesia’s strategic partners in developing the Indonesian Capital City. After the visit of the 8th President of the Republic of Indonesia, Prabowo Subianto, to Abu Dhabi, in-depth discussions regarding eight main investment sectors were immediately held. The UAE is committed to investing in various fields such as clean energy, housing, health, tourism, and food security.
UAE Ambassador to Indonesia, Abdulla Salem Al-Dhaheri, explained that his country’s commitment to supporting projects in the IKN is in line with President Prabowo’s vision of promoting sustainable development.
The UAE not only brings financial capital, but also offers technology transfer in the energy and health sectors. With mineral wealth such as nickel and bauxite, Indonesia is a strategic partner for the UAE in developing high-value industrial downstreaming.
Furthermore, the affordable housing project proposed by Indonesia is one of the areas of cooperation that has attracted the attention of the UAE. The ambitious plan to build three million housing units annually for a decade provides great opportunities for international developers. The Indonesian government has held eight meetings with UAE companies to discuss concrete steps to realize the program.
Given the high international interest, the development of the IKN is not only a symbol of Indonesia’s transformation, but also a great opportunity to strengthen global economic relations.
Business people from various countries see the Indonesian Capital as a new strategic growth center in Southeast Asia. East Kalimantan’s geographical position in the middle of world trade routes is an important factor in attracting foreign investors.
The government’s move to open up access as widely as possible for investment in the IKN also reflects the grand vision carried by the 8th President of the Republic of Indonesia, Prabowo Subianto. As a national leader with a military background and extensive international experience, President Prabowo understands the importance of global collaboration to drive inclusive and sustainable development.
IKN is now not only a dream of the nation, but also the hope of the world. With more and more countries opening the way for major investments, IKN is ready to become a catalyst for economic growth that will take Indonesia to a higher level on the international stage. This momentum must be utilized well, so that the collaboration that is established can provide real benefits for all levels of society.
