The Development of IKN is Under Spotlight, Is Investment Promotion Still Ongoing?

Kapanlagi.com - The Ministry of Investment and Downstream Development/Investment Coordinating Board (BKPM) shows a strong commitment to supporting the development of the Nusantara Capital City (IKN). They are actively promoting investment opportunities in this highlighted area, despite news about budget blockages for IKN development surfacing.

The Deputy for Investment Climate Development at BKPM, Riyatno, emphasized that they continue to coordinate with the IKN Authority (OIKN) to attract investor interest. "We are cooperating with the authority there that we remain committed to promoting everything that exists in IKN," he said as quoted from ANTARA.

On the other hand, OIKN also affirmed that the development of IKN will continue as planned despite budget efficiency measures. OIKN Spokesperson, Troy Pantouw, stated that the second phase of the development program planned for the period 2025-2029 will still be implemented. This aims to prepare the infrastructure ahead of Nusantara as the Political Capital of the Republic of Indonesia in 2028.

1. Investment in the Hospitality and Education Sectors Becomes the Main Focus

In an effort to stimulate investor interest, BKPM is targeting several strategic sectors in the Nusantara Capital City (IKN), where the hospitality sector has begun to attract attention, while the education sector is still in search of the ideal partners.

According to Riyatno, the Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani has taken various strategic steps, including exploring cooperation with foreign investors. "The Minister has also met with the Head of OIKN, Mr. Basuki, and the Minister has also been looking for investors from Singapore actually," he revealed.

However, BKPM has not yet disclosed in detail the identities of the investors who are said to be interested in investing in the education sector in IKN. Nevertheless, communication and negotiations continue to ensure the smooth process of investment.

2. Coordination with Foreign Investors

BKPM continues to engage foreign investors to enliven the investment climate in the Nusantara Capital City (IKN), with Singapore as one of the main targets.

Considering the close economic ties and Singapore's experience in creating modern cities, the government is optimistic that the presence of these investors will be a significant driver in accelerating infrastructure and service development in IKN, especially when the second phase of construction begins in 2025.

3. Budget Polemic

Amidst the vigorous efforts to attract investment, shocking news emerged regarding the development budget for the National Capital City (IKN) which is still blocked for the year 2025.

Minister of Public Works, Dody Hanggodo, explained that this delay is due to efficiency measures taken by the Ministry of Finance, resulting in the Public Works Ministry's budget shrinking from Rp81.38 trillion to only Rp29.57 trillion for this year.

However, do not worry, the government emphasizes that despite the savings, the development of IKN will not come to a complete halt. The Investment Coordinating Board (BKPM) and the Nusantara Capital Authority (OIKN) remain optimistic and collaborate to find alternative solutions, including engaging private investors to support the funding of this ambitious project.

4. The Development Program of IKN Continues to Progress as Planned

The spokesperson for OIKN, Troy Pantouw, firmly stated that the development of the Nusantara Capital City (IKN) continues to proceed as planned, with an ambitious target to make Nusantara the center of the Indonesian government by 2028.

Meanwhile, the Investment Coordinating Board (BKPM) tirelessly promotes investment, both domestically and abroad, and strengthens coordination with potential investors, including from Singapore.

With the strong commitment from BKPM and OIKN, the government is optimistic that IKN will become a new shining center of economic growth in the homeland.

5. People Also Ask

1. Is it true that the development of IKN has been halted due to budget blocking?

No. OIKN emphasizes that the development of IKN continues as planned, despite budget efficiency measures implemented by the government.

2. What is the role of BKPM in the development of IKN?

BKPM is responsible for promoting investment in IKN, attracting investors from various sectors, and ensuring the flow of capital to support development.

3. What sectors are the focus of investment in IKN?

Currently, the priority sectors are hospitality and education, with the aim of providing world-class facilities in IKN.

(kpl/rmt)