Friday, June 21, 2024
Deputy Head of Authority Showcases 45 Investors Ready for Groundbreaking in IKN
Acting Deputy Head of the Nusantara Capital Authority (OIKN), Raja Juli Antoni, announced that a total of 45 investors have already conducted groundbreaking ceremonies to commence their projects in IKN. This statement was made through a post on his personal social media account, X (formerly Twitter) @RajaJuliAntoni. According to him, investors continue to flock to this mega project of the new capital city.
"We are grateful that investors continue to come to Nusantara Capital to support the development process. As of today, 45 investors have conducted groundbreaking," said Raja Juli, quoted on Thursday (June 20, 2024). To provide legal certainty, the Deputy Minister of ATR/BPN added that a meeting was held this afternoon with the Deputies of the IKN Authority to discuss a draft cooperation agreement between the investors and the IKN Authority.
He further explained that the purpose of discussing this draft cooperation agreement is to thoroughly regulate the land management rights for investors after the groundbreaking has taken place.
"God willing, with the clearer status of the land, we hope more investors will come to realize the grand vision of Nusantara Capital as a smart forest city," he said.
As additional information, private investment in IKN has reached IDR 51.3 trillion up to the sixth groundbreaking. Besides direct investment, there is also the Government and Business Entity Cooperation (KPBU) scheme being explored by investors. Nine companies from three foreign countries and Indonesia are potentially pouring IDR 45 trillion into IKN.
Raja Juli's explanation about the number of investors in IKN came shortly after criticism arose regarding the lack of foreign investors in IKN. Initially, this issue was brought up again by Commission VI of the Indonesian House of Representatives (DPR RI) to the Minister of Investment/Head of BKPM, Bahlil Lahadalia, during a recent working meeting.
Due to the absence of foreign investors, the projects currently being built in IKN are dominated by those receiving state budget (APBN) funding. Overall, the total APBN allocated for IKN from 2022-2024 is IDR 90.2 trillion, of which IDR 72.8 trillion has been utilized.
Responding to questions from DPR members regarding foreign investors, Bahlil stated that Foreign Direct Investment (FDI) would enter in the second phase, while the current focus is on the first phase of development in IKN.
"When asked why there are no foreign investments yet, our design is that the first cluster is completed, what is referred to as the main road, the first ring is completed, then foreign investments will enter the second ring, the second phase," Bahlil explained in Senayan, Jakarta, on Tuesday (June 11, 2024).
Bahlil mentioned that the first phase of infrastructure development is being expedited to attract foreign investors. He also said that so far, foreign investors have been in communication. However, they can only confirm foreign investment in IKN after August 17, 2024.
Following this, former Coordinating Minister for Political, Legal, and Security Affairs, Mahfud MD, also gave his comments.
"Oh, until now there hasn't been any? Keep looking, Mas Bahlil," said Mahfud through his official Twitter account @mohmahfudmd, responding to the news on Wednesday (June 12, 2024).
Mahfud also mentioned that if the target for foreign investors to enter IKN is after August 17, then the timeline needs to be clear. "After August 17, the deadline needs to be clear. It could be 6 months, 2 years, or even indefinitely," Mahfud added.
Source : detik.com
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