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Investors Continue to Support IKN Development Progress
lsisi team Send an email9 hours ago
0103 minutes read
In this political year, the process of building the New National Capital (IKN) is still ongoing. Investors continue to provide strong support for IKN’s progress in the midst of a dynamic political year and this investment is considered strategic and has a big impact on profits and economic development which can provide positive results over a long period of time .
This makes investors such as Real Estate Indonesia (REI) not worry about the sustainability of investment in IKN even though there will be a change in president. Deputy General Chair of the Indonesian Real Estate DPP (REI) for Foreign Relations, Rusmin Lawin, said that the government has done its best in providing investment in the form of tax incentives for investors who invest in IKN.
The sustainability of the IKN project will continue where the underlying regulations such as IKN existed before the change of president, which was realized through the existence of laws and the RPJMN. So far, many foreign investors are interested in working together to present a city with a unique concept.
Investors who are committed to IKN development also contribute to positive social impacts. Increasing accessibility through transportation projects can open up economic opportunities in remote areas. Sustainable development of energy resources can increase access to electricity, improve quality of life, and support environmentally friendly initiatives. Therefore, investor support for IKN development brings benefits not only to themselves but also to society as a whole.
Likewise, the President Director of PWON, Alexander Stefanus Ridwan Suhendra, said that his party does not mind if a presidential candidate refuses and believes that IKN has good prospects in the future and that it will be difficult for the elected president to cancel this project because there is already a law and it has been carried out periodically.
These investors see that IKN covers a number of strategic sectors that support various aspects of people’s lives. Investments in modern transportation, sustainable energy resources, and reliable communications networks can move the economy to greater heights. Investors realize that support for IKN is not only a business investment, but also their contribution to community development and improving the quality of life.
Although the political year is often considered a period of uncertainty, the sustainability of this investment can bring significant benefits to economic growth in Indonesia.
The sustainability of the Special Economic Zone (IKN) project continues to be strengthened through support from various parties, including the Deputy Chair of the Indonesian Furniture and Crafts Industry Association (Asmindo), Anne Patricia Sutanto. Even though there are concerns about political certainty and legal risks, Anne Patricia Sutanto stated her readiness to be involved in IKN development. The importance of open communication between the government and investors, supported by consistent policies, is key in overcoming obstacles and concerns that may arise. By creating a transparent and stable environment, both from a political and legal perspective, investors and the general public can feel more confident and encouraged to actively participate in IKN development, thereby creating a positive synergy between the private sector and the government.
President Jokowi also dismissed investors’ concerns due to election factors. According to the Head of State, the Indonesian nation has matured in democracy. Experience in holding direct elections since 2009, 2014, 2019, shows that Indonesia can maintain peace and harmony in democratic parties.
President Jokowi believes that IKN also has strong political legitimacy. The acceleration of IKN development is based on Law Number 3 of 2022 concerning IKN which is supported by 93 percent of members of the DPR factions. Jokowi believes that the IKN Law provides political and legal guarantees for investors who want to participate in building IKN.
Even though political years are often accompanied by political and policy shifts, investors tend to continue to support the progress of IKN development with guaranteed political and legal stability.
Head of the Nusantara IKN Authority , Bambang Susantono, said that the political year does not affect investors’ interest in entering IKN. The proof is that groundbreaking, aka the inauguration of the start of the project, has taken place four times and recorded investment in IKN Nusantara amounting to IDR 47.5 trillion. This investment is outside the APBN investment.
The government has a central role in creating a favorable investment environment. Policies that support investment, transparent regulations and legal certainty play an important role in attracting investors. Apart from that, the government can also mitigate political risks by providing guarantees of long-term policy stability, providing fiscal incentives, and establishing strong partnerships with the private sector.
Investors who remain involved in IKN development can experience long-term benefits. Infrastructure projects tend to provide stable and sustainable returns on investment. In addition, increasing connectivity and efficiency in national infrastructure can create new business opportunities, expand market share, and increase global competitiveness.
Investors who continue to support the progress of development of Key National Infrastructure in the midst of the political year prove that political stability and long-term investment are not mutually exclusive. By continuing to increase investment in this sector, a country can create a solid foundation for economic growth, increasing global competitiveness, and improving people’s quality of life. In achieving these benefits, close collaboration between government and the private sector is critical to achieving long-term success.
