Big Singapore Investors Commitment to Support the Development of National Archipelago IKN
By : Arzan Malik Narendra )*
The construction of the nation’s capital city (IKN) is fully supported by 2 large investors from Singapore. They see IKN as a future city that is modern, dynamic, and still maintains natural sustainability. With the support of investors, the construction of IKN will be completed more quickly and become a proud capital city.
The development of the National Capital City (IKN) of the Archipelago is a mega project that will take years. The community is very impressed with the IKN concept, even though the construction process has not been completed. IKN Nusantara is not just an ordinary capital city, not a mega-city with giant buildings like Jakarta, but will become a sophisticated green city .
The construction of the IKN is in progress and it is targeted that by the middle of 2024, the Presidential Palace will have been completed, because it will be used as the venue for the 17 August independence anniversary ceremony. The development of IKN is supported by various parties. Their support is very important because it will expedite its development, and IKN will stand in accordance with the targets set by President Jokowi.
Various parties support the smooth development of IKN Nusantara, including 2 large investors from Singapore. Indonesian Capital City Authority (OIKN) Bambang Susantono signed a Non Disclosure Agreement (NDA) with two Singaporean investors namely State Power Investment Cooperation (SPIC) and JOE Green Pte Ltd. The signing of this NDA is proof of Nusantara’s progress with international investors, especially from Singapore.
OIKN Deputy for Funding and Investment, Agung Wicaksono, stated that this shows that investment projects in the archipelago are progressing rapidly. Singapore’s sustainability as a garden city will have an impact on the archipelago which carries the concept of a smart sustainable forest city .
Agung Wicaksono said the two companies are engaged in renewable energy and waste management. This is in line with OIKN’s top priority sectors. Nusantara aims to build up to 7.16 gigawatts of renewable energy power plants to accommodate 1.9 billion people in 2045.
The NDA will be followed up by exchanging data to formulate a feasibility study as well as economic aspects and investment markets in the sector. OIKN is committed to welcoming all investors through the Public Private Partnership (PPP), a direct investment scheme along with tax and non-tax incentives, including land rights for up to 95 years.
OIKN has more than 300 investment packages with a total value of 2.6 billion dollars consisting of six main priority sectors and twelve high priority sectors.
In that sense, the existence of the 2 Singaporean investors is very good, moreover they are high-class businessmen. They believe that IKN is a city of good future. Especially with the IKN concept, namely green city (forest city), modern city, and sponge city. This concept is very unique and is the first time in the world.
Meanwhile, Head of the National Planning and Development Agency (Bappenas) Suharso Monoarfa stated that many investors wanted to join the IKN development project. Therefore, the master plan will continue to be perfected.
In a sense, IKN will encourage increased investment in Indonesia. The city isn’t finished yet but the investors are already lining up to take part in its construction. IKN is the future of Indonesia and a dream city, which is modern and all digital. It is very natural for investors to want to enter the IKN project because it is guaranteed to be profitable.
Investors are very interested in investing because Borneo has a lot of potential, from natural resources, minerals, to human resources. This potential will be processed and become superior. Born natives of Borneo also join in and are proud because the more investors, the more employees, and can reduce the unemployment rate there.
In building IKN, they cooperate with the government and help create a sophisticated and dynamic capital city. Even though IKN has not been officially established and is in the early stages of development, investors believe that Indonesia’s future lies in Borneo, especially Penajam Paser Utara.
Investors will want to invest in IKN because Kalimantan is equipped with infrastructure and that is indeed their requirement before investing. Since a few years ago, the government has been promoting national strategic projects, not only in Java but throughout Indonesia. If there is infrastructure in Kalimantan, it will be more convincing for investors.
If there is investment, it can boost the economy because if they enter Indonesia, there will be many cooperation projects. Especially if it is held at the IKN in Kalimantan. These projects will attract a large number of prospective workers and eradicate unemployment. If many work, many will also receive a salary, so that people’s purchasing power increases and stimulates the Indonesian economy.
The entry of large investors from Singapore is very good because there are more and more investors in IKN Nusantara. That way the IKN development project will be completed quickly and the results will also be good. If there is a lot of investment, the effect will not only be on the government, but also on society, because it can trigger their economy.
)* The author is a contributor to the Siber Nusa Institute