Government Intensifies Exploration of Cooperation with Foreign Investors to Accelerate Development of IKN
By: Mariza Agustia(*
The government continues to demonstrate a strong commitment to realizing the development of the Indonesian Capital City (IKN) as a symbol of the nation’s new civilization. Strategic steps continue to be taken, one of which is through intensive exploration of various cooperation options with foreign investors. This effort not only shows the seriousness of the government, but also opens up great opportunities for accelerating the development of a city that is predicted to become an environmentally friendly, inclusive, and technology-based city of the future.
Head of the IKN Authority, Basuki Hadimuljono said that to date, the total private sector investment that has entered the IKN project has reached around IDR 58 trillion. This figure is real evidence that this project has high appeal for the private sector. Not only that, the Government and Business Entity Cooperation (KPBU) scheme also continues to develop. Several infrastructure project proposals such as roads, Multi Utility Tunnel (MUT), and housing development are being processed. Among them, large companies such as Intiland and Nindya Karya are also taking part in this strategic project. Meanwhile, financing sourced from the State Budget (APBN) has reached IDR 68 trillion, showing a strong synergy between public and private funding in supporting the success of IKN development.
Not only relying on domestic potential, the government is also actively opening the door to foreign investors. Deputy for Funding and Investment of the IKN Authority, Agung Wicaksono, explained that interest from European countries is getting stronger. Currently, there are a number of Letters of Intent ( LOIs ) from Finland, including four of which have been followed up. In fact, one of the LOIs has developed into a Memorandum of Understanding ( MOU ), which is expected to immediately result in investment realization. He hopes that the MOU will be realized so that foreign investment will continue to increase in the IKN, especially in the technology and infrastructure sectors.
Finland’s great interest in supporting the IKN project is certainly not without reason. The country known for its advanced technology and city innovation sees a great opportunity to contribute. The Finnish Ambassador to Indonesia, Timor Leste, and ASEAN, Pekka Kaihilahti, stated that the Finnish Embassy’s visit to IKN had the main objective of collaborating in developing the smart city concept. According to Pekka, Finland has the best expertise, experience, and application in the field of smart city technology. With Proof of Concept (POC) technology such as smart poles that have been implemented at Rumah TeknoNusantara, it is hoped that it can help realize the vision of IKN 2045 as a world city for all.
This support from Finland is also a strategic step in adopting environmentally friendly and sustainable technology that will be the foundation for the development of the IKN. The smart pole concept, for example, not only supports an energy-efficient lighting system, but is also equipped with sophisticated communication and monitoring technology. This is in line with the government’s vision to make the IKN a modern city that integrates the latest technology to improve the quality of life of its citizens.
On the other hand, the great interest from foreign investors also reflects the international community’s trust in the economic stability and strategic policies of the Indonesian government. In the context of ever-changing global geopolitics and economy, the government’s success in attracting foreign investment to the IKN shows that Indonesia has high competitiveness as an investment destination.
However, the challenges in realizing this cooperation should not be ignored. The government needs to ensure that the negotiation and implementation process is transparent, accountable, and efficient. In addition, investor-friendly regulatory support is also an important key to providing a sense of security and trust for foreign partners. By creating a conducive investment ecosystem, the target of making the IKN a future city that is able to compete on the global stage is not impossible.
For the Indonesian people, the presence of the IKN is not only about building a new city, but also opening up great opportunities in creating equitable development. This project is expected to be a driving force for the national economy, creating new jobs, and increasing Indonesia’s competitiveness at the regional and global levels.
In the long term, IKN is expected to be a role model for other cities in Indonesia, especially in adopting the principles of sustainable development. With a concept that integrates technology, sustainability, and inclusivity, IKN will be proof that Indonesia is able to build a better future for future generations.
The government’s steps in exploring cooperation with foreign investors to accelerate the development of the IKN deserve appreciation. With the support of all parties, including the community, private sector, and international partners, the grand vision of making the IKN a symbol of Indonesia’s progress can be realized. Let us together support and oversee this strategic project for a more advanced, prosperous, and competitive Indonesia in the future.
)* Contributor to the Indonesian Strategic Information Study Institute (LSISI)
