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IKN Development Still a Magnet for Foreign Investors

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By: Hafidz Hernawan )*

The development of the Indonesian Capital City (IKN) in East Kalimantan continues to be in the spotlight, both domestically and internationally. As one of the national strategic projects, IKN Nusantara has caught the attention of foreign investors who see great potential in this area. The project, which was initiated to reduce the burden on Jakarta, also aims to create a sustainable, modern, and inclusive future city.

The government has designated IKN as a technology-based and environmentally friendly smart city. The uniqueness of this concept is a special attraction for global investors who want to contribute to the development of infrastructure, energy, and the technology sector. In addition, its strategic location in the middle of Indonesia provides logistical benefits for business actors.

Spokesperson for the Presidential Communications Office, Dedek Prayudi, said that the government continues to be strongly committed to realizing the development of IKN. One of the concrete steps taken is the ratification of the IKN Law, which provides a clear legal framework for the development of this area. The existence of an authority body that specifically manages this project also provides legal certainty and accelerates the licensing process for investors.

This commitment is strengthened by President Prabowo’s direct involvement in monitoring the development of the project. The presence of various investment forums involving business actors from various countries is also proof that the government is serious about making the IKN a center of global investment attention.

Foreign investors’ interest in the IKN is demonstrated by the many bilateral meetings and visits to the development area. Investors from several countries such as Japan, South Korea, the United Arab Emirates, and Singapore have expressed their interest in investing in various sectors. Not only physical infrastructure such as roads, bridges, and buildings, but also information technology, renewable energy, and clean water management.

Several international companies have also conducted feasibility studies in the IKN to explore investment opportunities. This interest cannot be separated from the concept of sustainable development offered by the IKN, such as the use of green energy, modern waste management, and the implementation of an electricity-based public transportation system.

Deputy for Funding and Investment, Agung Wicaksono said that the interest of foreign investors to invest in the IKN Nusantara continues to increase in line with the government’s aggressive promotion of this project as a strategic opportunity in Southeast Asia. This project not only promises economic benefits, but also creates a business ecosystem that supports innovation and is environmentally friendly.

The government also continues to strengthen its commitment through clear regulations, investment incentives, and international business forums to attract more parties. In addition, the development of special economic zones around the IKN provides great opportunities for investors to expand their businesses with adequate supporting facilities. Although with sustainable funding and full support from the community, the IKN is expected to become a new center of growth that has a positive impact on the national and international economy

The IKN is projected to become a new center of economic growth for Indonesia. With the support of modern infrastructure, this area is expected to be able to attract more foreign direct investment (FDI). The development of special economic zones (KEK) and industrial zones around the IKN also provides additional incentives for investors.

The government guarantees that the development of the IKN will have a domino effect on the national economy. In addition to creating new jobs, the existence of the IKN is also expected to increase regional income in East Kalimantan and its surroundings. Investors who enter this area can take advantage of various incentives such as certain tax exemptions, ease of licensing, and support for pro-investment regulations.

Secretary General of the Indonesian Young Entrepreneurs Association (Hipmi), Anggawira, assessed that the future prospects of the IKN are still promising. However, this depends on the government’s steps in accommodating investment. The government needs to ensure legal certainty, transparency of the licensing process, and provision of adequate basic infrastructure to attract more investor interest. The importance of collaboration between the government and business actors in designing inclusive policies and encouraging investment in strategic sectors such as green technology and renewable energy.

The development of the IKN is not only the responsibility of the government and investors, but also requires community support. Public participation in various stages of development will ensure that this project runs according to the needs of the local community. Education about the benefits of IKN development and its impact on the national economy must continue to be encouraged.

In addition, collaboration between the government, investors, and the community akat is expected to create an inclusive and sustainable development ecosystem. Thus, IKN will not only become a center of economic growth, but also a symbol of the nation’s progress.

With the various efforts that have been made, IKN Nusantara still has great appeal for foreign investors. If managed well, this project has the potential to become a model for sustainable and innovative future city development. The success of IKN will prove to the world that Indonesia is capable of realizing ambitious projects that have a positive impact on economic growth and public welfare.

In the next few years, IKN is expected to be able to make a significant contribution to Indonesia’s transformation into a global economic power. The government and all elements of the nation must work together to ensure that this great opportunity can be utilized optimally. The success of IKN will be real proof that Indonesia is ready to welcome a brighter future.

)* The author is a student living in Samarinda

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