By: Ganesha Darsa )*
The development project of the Indonesian Capital City (IKN) initiated by President Joko Widodo (Jokowi) is one of the biggest legacies from his administration. In addition to being a symbol of transformation towards a more modern and environmentally friendly center of government, the IKN is also projected to become a global investment magnet. Until September 2024, it was recorded that non-APBN private investment that had entered the IKN reached IDR 58.4 trillion. This figure shows the great potential of the IKN as an investment destination that is in demand by business actors, both domestic and international.
President Jokowi emphasized the importance of selectivity in filtering potential investors who want to invest in the IKN. The government does not want to accept any investment that comes in carelessly. The seriousness of investors in supporting the development of the new capital city is one of the main criteria in the selection process. According to Jokowi, the figure of Rp58 trillion that has been achieved is a significant amount, but still opens up opportunities for other investors who are truly serious about making long-term contributions to the IKN.
This strict selection process for investors is carried out to maintain the sustainability and quality of IKN development. By selecting the right investors, the government seeks to create a conducive business environment and ensure that infrastructure and public facility development can proceed according to the established plan. This step reflects Jokowi’s vision of not only pursuing high investment figures, but also ensuring that the investment has a positive impact on national economic growth.
In addition, President Jokowi’s optimism regarding the achievement of investment targets is based on the high interest of potential investors who are beginning to see the great potential of the IKN. This was conveyed by the Acting Head of the IKN Authority, Basuki Hadimuljono, who revealed that commercial spaces in the IKN have begun to open, thus attracting the attention of investors from various sectors, especially logistics. He added that in the near future, there are still opportunities for new investors to conduct groundbreakings in the IKN, which could accelerate the achievement of investment targets.
However, the government realizes that to attract more investors, attractive policies are needed, both in the form of fiscal and non-fiscal incentives. Incentives such as Income Tax (PPh) Article 21 relief, Value Added Tax (PPN) exemption, and longer tax holidays are expected to increase the attractiveness of the capital city in the eyes of foreign investors. Not only that, the political stability that was maintained during the transition period of government from President Jokowi to President-elect Prabowo Subianto is also an important factor supporting the entry of foreign investment into Indonesia, including into the capital city.
Executive Director of the Institute for Development of Economics and Finance (Indef), Esther Sri Astuti, stated that maintained political stability makes Indonesia seen as a safe and prospective place to invest. According to her, consistent government policies, both at the central and regional levels, are also very important to create a conducive investment climate in the IKN.
In the context of foreign investment, Minister of Investment/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, said that interest from foreign investors continues to grow. In the past few months, the number of foreign companies interested in investing in the IKN has increased, with five large companies already showing serious interest. This is a positive signal for the government in achieving the set investment targets.
IKN is not only designed as a new center of government, but also as a new center of economic growth in Indonesia. With various investment opportunities offered, ranging from the logistics sector, property, to renewable energy, IKN is projected to become a center of innovation that will drive economic growth in East Kalimantan and Indonesia as a whole. The success of IKN in attracting investment, as has been achieved to date, will not only strengthen the foundation of the national economy, but will also be a valuable legacy of President Jokowi’s administration.
Over time, the government continues to improve infrastructure and regulations to ensure that the IKN can develop into a dream city of the future. In addition to physical development, the development of the IKN also includes social, economic, and environmental aspects, all of which aim to create a sustainable and friendly city for all its citizens.
The government’s seriousness in developing the IKN as a city of the future can be seen from the hard work made to invite investment and establish cooperation with various parties. The ongoing groundbreaking process, even in the final days of Jokowi’s leadership, is proof of the government’s commitment to realizing this grand vision. There is no doubt that the IKN will be one of President Jokowi’s greatest legacies, which will later become a starting point for Indonesia to move towards a better future, where sustainable and inclusive development is a top priority.
Thus, although challenges still exist, the achievements that have been achieved in the IKN to date, especially in terms of investment absorption, provide great hope for the future of Indonesia. As a city of the future, the IKN is expected to be a symbol of the success of this nation in creating a center of government and economy that is not only advanced, but also able to attract international attention as a promising investment destination.
)* The author is a student majoring in Planning