By: Gita Oktaviani )*
The National Capital City (IKN) is increasingly in demand by local and foreign investors. They believe that the IKN development project is very profitable. IKN Nusantara will be a city of a promising future, so it is highly favored by investors.
The national capital will be moved from DKI Jakarta to North Penajam Paser, East Kalimantan. According to the plan, IKN Nusantara will be ready for habitation in 2 years, and the Indonesian Independence Day ceremony on August 17 2024 will not be held in Jakarta but at the IKN Presidential Palace in Kalimantan. Therefore construction continues to be carried out in accordance with the schedule and targets set by the government.
In order to support the development of IKN, the government allows investors to invest there. With a cooperative system, it will be mutually beneficial. IKN is increasingly in demand by investors from both Indonesia and foreign countries.
IKN Authority Head Bambang Susantono stated that there were three investors ready to build the State Civil Apparatus (ASN) and Defense and Security residences at IKN. The three investors are PT Summarecon Agung Tbk (Summarecon), the CCFG Corp Consortium – PT. Risjadson Brunsfield Nusantara (CCFG-RBN), and Korea Land and Housing Corporation (KLHC).
The total investment value of the three investors is around 41 trillion rupiah under the Public Private Partnership (PPP) scheme. The following is a breakdown of the investment value, Summarecon of 1.67 trillion rupiah, RBN-CCFG of Rp. 30.8 trillion and KLHC of Rp. 8.65 trillion.
Bambang added, the three companies had obtained a Project Initiative Permit (SIPP) or Letter to Proceed (LTP) from the Minister of Public Works and Public Housing (PUPR). Currently there are 59 business actors from various sectors who have sent Letters of Intent to invest in IKN which are being processed and he is sure that this number will continue to grow. Hopefully the next process can be completed soon and we can immediately step on the gas in early 2023.
The sectors currently of interest to investors are education (15 LOI), health (5 LOI), housing (8 LOI), government offices (2 LOI), private and state-owned offices (3 LOI), mixed use (8 LOI), consulting (6 LOI), infrastructure and utilities (10 LOI) and technology (2 LOI).
Investment in various sectors will be very good because it will make IKN a capital city with complete facilities. New residents of IKN (who are civil servants transferred from DKI Jakarta) can send their children to good quality schools. They also enjoy modern city facilities such as electric vehicles. Thanks to the help of investors, IKN has become a sophisticated place.
If the investment increases drastically, it will be very good because the construction of the National Archipelago National Park will be on target and make it a green and sophisticated city of the future. Investors are confident about IKN because they like the concept. Not only a modern city but also a green city and sponge city . Where this city is in the middle of a beautiful forest, and its development will not damage the environment.
Kalimantan is one of the lungs of the world and the government will not cut down forests for the sake of building IKN. Investors also understand this and they will build IKN without destroying the environment. The public need not fear the arrival of investors because they will not cut down trees or steal Indonesia’s natural wealth, but will work with the government to build IKNs.
Investors also like the sponge city concept in IKN because it will absorb excess rainwater. IKN Nusantara will be flood free, unlike DKI Jakarta. They believe this city will be far better than Jakarta, therefore they believe and invest there.
Moreover, investors get direct guarantees from the President of Indonesia. The government opens its doors wide for investors. President Jokowi stated that IKN Nusantara is the future of Indonesia which can be realized with the joint efforts of all parties, including investors. Therefore, the government opens opportunities for investors to realize the transformation of Indonesian civilization.
Meanwhile, entrepreneur Agung Jemmy Kusnadi said that his party was very proud to be involved in the development of the National Archipelagic Institute and that his party would always support projects that could have a positive impact on the nation’s economy. IKN Nusantara is a historical project and we are proud to be a part of Indonesian history.
With SIPP, investors will then carry out a comprehensive feasibility study covering the design concept, project scope, and technology recommendations that optimize project life cycle costs.
IKN is increasingly in demand by local and international investors. They believe that investing in IKN Nusantara is very profitable. With so many investors coming in, it will be good for Indonesia because foreign exchange will increase, and the IKN project will be completed according to the government’s expectations.
)* The author is a contributor to the Windows Baca Institute Contributor
