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A number of Asian countries are interested in building IKN and buffer areas

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By: Alula Khairunisa)*

The Capital of the Archipelago (IKN) in East Kalimantan has apparently attracted a number of Asian countries as an investment destination. Not only that, these countries are also interested in developing a number of buffer zones in the new capital city. A number of countries such as China, Japan, Australia, Hong Kong, Malaysia and South Korea are interested in building IKN Nusantara. These countries have explored cooperation in various fields. Starting from agriculture, plantations, animal husbandry, education, tourism, transportation, health and other technology development fields, not only for the construction of IKN facilities but also for buffer areas. Governor of East Kalimantan (Kaltim) Isran Noor said, various potential natural resources are the main attraction for investors from abroad to invest in various fields of development. Moreover, East Kalimantan Province has been designated as the Capital of the Archipelago. Isran said the exploration of cooperation from several countries had been accepted by the Investment Coordinating Board (BKPM) and directly to the East Kalimantan Provincial Government through the East Kalimantan Province One Stop Integrated Service and Investment Service (DPMPTSP). Based on data and information from BKPM, there are already several countries that have explored investment in various fields in East Kalimantan and especially for development in the IKN area. Isran added that the potential and opportunities in East Kalimantan will continue to be promoted outside the region and even abroad through a number of exhibitions. With this promotion, East Kalimantan’s potential can attract investors to invest, especially in IKN and investment in IKN buffer areas. Isran Noor also explained that the development of IKN in East Kalimantan Province in Sepaku District, North Penajam Paser Regency (PPU) with a Sustainable green city, smart city with the aim of building a city that remains insightful, has a background and protects the environment, so that IKN development can attract the world. international. The development of IKN continues to maintain the environment with a green city, so that the existence of IKN is not only for the benefit of Indonesia, but also belongs to the nations of the world. The IKN development will certainly be an opportunity for investors to invest from various countries. The news, of course, dismissed the news that said that IKN in East Kalimantan had little interest from investors. Previously, the Minister of Finance (Menkeu) Sri Mulyani Indrawati said, there are 2 pathways that can be used by potential investors to invest in the National Capital Development project (IKN) in East Kalimantan. First, investors can enter as shareholders and the second option can be as creditors. Investors just choose the option provided by the government, which one they think is the most profitable. According to him, the role of investors is very important because IKN development cannot only rely on the state budget. This is because the APBN will only be used for the construction of basic infrastructure such as roads, dams, ports and airports. The Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan said the IKN development apparently attracted great interest from foreign investors. He also emphasized that it is not true if there are parties who say that IKN development has minimal funding. Luhut also added that currently Indonesia’s development is much more even. Many new industries are growing in Kalimantan, such as the development of a new energy industry in North Kalimantan, as well as the development of IKN in East Kalimantan. Therefore, Luhut believes, investment is no longer only centered on the island of Java. He also hopes that more and more young people can take part in encouraging the Indonesian economy. Meanwhile, investment commitments have also come in the automotive sector, where PT Krakatau Steel and Krakatau Posco are committed to expanding the production and production capacity of automotive steel for electric vehicles with a total investment plan of US$3.5 billion or equivalent to Rp52.5 trillion. . Investment Minister Bahlil Lahadalia explained that this collaboration between the Ministry of Investment and Krakatau Steel and Posco was carried out in order to facilitate the expansion plan which will begin in 2023. In addition, this collaboration was also carried out in order to facilitate the IKN development project plan. Bahlil also ensures facilitation related to the licensing process and incentives that will be provided in accordance with the applicable laws and regulations. This was appreciated by Kim Hag-Dong as CEO of Posco, he expressed his deepest appreciation to the Ministry of Investment for facilitating this project from the beginning to the expansion stage. The government has proven to be serious in working on IKN projects, one of which is by collaborating with investors so that IKN development does not become a heavy burden for the State Budget, on the other hand the fertile investment in IKN will also have a positive impact on IKN and buffer areas.

)* The author is a contributor to the Nusa Bangsa Institute

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