The development process of the National Capital City (IKN) of the Archipelago continues to show significant progress. The progress of physical infrastructure construction which is the task and authority of the Ministry of Public Works and Public Housing (PUPR) in Batch I reached 70 percent, and Batch II reached 20 percent.
Apart from that, IKN development also has a positive impact on the surrounding area, so that development is currently reaching areas outside the core central government area. This impact can be seen from the construction of the National Axis phase one to date which has reached 96.41 percent and the Sepaku Semoi Dam which has been 100 percent complete.
Then other developments from four groundbreakings as a sign of the start of new physical work at IKN Nusantara also showed quite significant progress. The construction of IKN from the laying of the first stone as a sign of the start of new physical construction will be carried out in September, November and December 2023, and January 2024 is phase one.
The first phase of IKN development consists of main sectors, including hotels, residential, retail, logistics and offices, education, health, energy, transportation and green areas. Then the overall progress of phase one development until January 2024 reached around 71.47 percent.
Currently, the development of IKN Nusantara has proceeded according to the targets that have been set, this achievement is proof of commitment to realizing the new capital city of Indonesia, which was built in parts of North Penajam Paser Regency and Kutai Kartanegara Regency in East Kalimantan Province. Completion of work on various infrastructure facilities at IKN is in line with the target of measuring new history, namely holding a ceremony commemorating the 79th Independence of the Republic of Indonesia on August 17 2024 in the capital of the future country of Indonesia.
Apart from that, President Joko Widodo (Jokowi) said that funds for IKN development in parts of North Penajam Paser Regency and Kutai Kartanegara Regency in East Kalimantan Province were approximately IDR 466 trillion, with around 19-20% coming from the State Revenue and Expenditure Budget (APBN). and around 80% through investment. Then in the latest development, the Archipelago Capital Authority (OIKN) also noted that 15 Finnish companies expressed their interest in investing in IKN Nusantara.
Head of the Archipelago Capital Authority (OIKN), Bambang Susantono, said that the total public investment commitment that has been injected by government and non-government institutions for IKN development has reached IDR 47.5 trillion. Of this amount, investment commitments from the private sector reached IDR 35.9 trillion, while from a number of government institutions it was IDR 11.6 trillion.
Furthermore, the IKN Authority has also held the third phase groundbreaking in December 2023 with a total investment of IDR 4.78 trillion and the fourth phase groundbreaking in January 2024 amounting to IDR 4.26 trillion. There are four pioneer investors who have carried out the first phase of groundbreaking.
The first is the Indonesian consortium for various projects consisting of the Agung Sedayu Group, Adaro, Sinarmas, Pulauintan, Salim Group, Astra, Mulia Group, Barito Pacific, Kawan Lama, and Alfamart. Apart from the Indonesian consortium, other investors are Vasanta Innopark which is building hotels, Abdi Waluyo Hospital for hospitals, and FIFA for international football training.
The total investment of the four investors who had groundbreaking in the first stage reached IDR 23.1 trillion or the largest portion of the total investment disbursement in 2023, which is IDR 41 trillion. Investors who have entered the second phase groundbreaking list include Hermina for hospitals, Pakuwon Group for various projects, Jakarta International School for international schools spearheaded by various embassies, Mayapada Hospital for hospitals, Astra for the relocation of the SDN 02 Sepaku school.
Meanwhile, PUPR Minister Basuki Hadimuljono said that the development of IKN Nusantara shows a strategic step and reflects Indonesia’s commitment to sustainable city development and resilience in facing climate change. IKN was built to become a transformative city towards the progress of Indonesian civilization by carrying out the concept of “Future Smart Forest City”. This concept aims to demonstrate national identity, ensure social, economic and environmental sustainability, and create a smart modern city with international standards.
The Ministry of PUPR plays a significant role in ensuring the availability of basic infrastructure such as road access, water supply and government offices. With this big target that must be achieved by the end of 2024, innovation in business processes is a must for the PUPR Ministry, especially through the application of information technology in the Industry 4.0 era.
The existence of IKN Nusantara has changed the development orientation to become Indonesia-centric, and functions to accelerate the country’s economic transformation. So economic equality is an important goal in the development of a country or region, and the right investment can be one of the means to achieve it. Some of the ways in which this investment supports economic equality, namely, investment in infrastructure projects in IKN Nusantara can increase connectivity and accessibility between regions, as well as help build the basis for economic growth in various locations. In addition, investment can create new economic centers, which in turn can have a positive impact on the local economy.
