By: Alfian Samsudin *)
As part of efforts to advance the development of the Indonesian Capital City (IKN), a number of Finnish entrepreneurs made an official visit led directly by the Finnish Ambassador to Indonesia, Pekka Kaihilahti. The group explored investment opportunities in the Smart City sector, which is one of the main visions of IKN development. Finland, which has expertise and advanced technology in developing the Smart City concept, hopes to share its experience and technological advantages with Indonesia. This visit is also expected to strengthen bilateral relations between the two countries.
Deputy for Funding and Investment, Agung Wicaksono explained that the Finnish group reviewed Smart Pole technology and various other innovations being developed in the IKN. In addition, the group also visited the Proof of Concept (POC) Smart Pole at Rumah Tekno Nusantara and several strategic locations such as the PSSI Training Center, the State Palace, and the Ceremonial Plaza. Agung emphasized that Finland has shown great interest in investing in the IKN by submitting four letters of interest or Letters of Intent (LOIs), where one of the LOIs has been followed up into a Memorandum of Understanding (MoU).
The MoU between Finland and Indonesia is expected to generate real investment, so that the amount of investment, especially from foreigners, continues to grow. It should be noted that the total investment that has entered the IKN to date has reached IDR 58 trillion, including foreign investment. With the interest shown by Finland, the country is expected to become one of the significant contributors of investment.
In terms of infrastructure, the government has recorded significant progress in the development of the IKN. By the end of December 2024, this project had reached an average progress of 70% for work funded by the State Budget (APBN). The development process is divided into three stages. The first stage, which took place from 2020 to March 2023, included 40 work packages with a contract value of IDR 25.1 trillion and a completion progress of 97.2%. The second stage, from April 2023 to November 2023, involved 31 project packages worth IDR 27.6 trillion with a progress of 81.1%. Meanwhile, the third stage, which began in December 2023 and is still ongoing, includes 38 work packages with a contract value of IDR 36.2 trillion and a progress of 32.1%.
In addition to funding through the State Budget, the government certainly utilizes non-State Budget mechanisms to accelerate the development of the IKN, as previously exemplified, namely cooperation with Finland. By the end of the year, 16 work packages funded by non-State Budget have shown an average progress of 92%. This approach reflects the government’s success in attracting private sector participation and strategic partners.
The housing development project for State Civil Apparatus (ASN) also showed rapid progress. Four types of ASN housing, namely SN1 to SN4, each recorded progress that was almost approaching the final stage. With details of SN1 reaching 91.3%, SN2 at 85.3%, SN3 at 85.1%, and SN4 reaching 87.8%, this development is designed to ensure the comfort of ASN who will serve in the IKN.
Meanwhile, the IKN Authority also emphasized the importance of developing a life-oriented education ecosystem in the new capital city. Deputy for Socio-Cultural and Community Empowerment, Alimuddin, explained that the first phase of development involved collaboration with the provincial and district/city governments, considering that the areas were still under their administration. Secondary and elementary education, such as elementary and junior high schools, are still the authority of the regions, but still involve coordination with the IKN Authority.
According to Alimuddin, the IKN Authority formulated a life-based education roadmap to produce graduates who are ready to face future challenges. This education program is designed so that high school graduates have adequate provisions to live and work in society, not only focusing on the college path. The education system with the potential of the IKN’s future also needs to be adjusted, so that it continues to develop until 2045 towards Indonesia Emas.
In order to improve the quality of education, the IKN Authority is also actively carrying out various teacher capacity building activities in collaboration with the local government. One of the leading programs is the PAUD teacher internship to Yogyakarta, where teachers get the opportunity to practice the knowledge they have gained in their respective regions. In addition, programs such as Free Nutritious Meals are also a form of government support to accelerate the development of the education sector in the IKN.
The government continues to closely monitor development progress to ensure that it runs according to schedule. With the target of making the core area of the government center fully functional in the near future, the government is utilizing advanced technology to realize the IKN as a smart city that is oriented towards sustainability and energy efficiency.
IKN is not only designed as a modern government center, but also as a symbol of sustainability and representation of Indonesia’s future. Through international collaboration, investment, and human resource development, the government is optimistic that IKN will become a world-class smart city, while creating equitable development throughout Indonesia. With full support from various elements of the nation, IKN is ready to become the new face of Indonesia that is more advanced and prosperous.
*) contributor to the Reading Window Institute
