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INVESTMENT Minister/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said that the progress of basic infrastructure development in the Capital City of the Archipelago (IKN) has begun to appear, such as toll roads, houses and offices.
The basic infrastructure, said Bahlil, is to convince investors to invest in the location of the new capital city located in Penajam Paser Utara Regency, East Kalimantan.
“Right now, because we are just starting to enter basic investment, to convince people we have to build it first, first intervene using government funds. But in parallel we have done various ways to build investment deals with pure private parties, and that already exists,” said Bahlil, Saturday (02/25), 2023.
“Both from the United Arab Emirates, then Korea, then Taiwan, then from China there are already even Europeans who are interested,” he continued.
According to Bahlil, the construction of IKN requires a budget of around IDR570-600 trillion with a state budget financing scheme of 20% and 80% financed from pure investment.
“I want to say that the total IKN project budget for around 500 to 600 trillion is only 20% financed by the state budget, so sorry, the remaining 80% of the investment, that is the task of the investment minister and the chairman of the authority to do that,” he said.
To pursue the investment value, Bahlil will prepare attractive incentives for investors not to hesitate and immediately invest.
Bahlil pointed out that the world football federation FIFA without hesitation has invested by building a training center at IKN in collaboration with the Indonesian Football Association (PSSI).
“Do you know that FIFA is now building 30 hectares of stadiums and training fields financed by FIFA, the government only prepares the land. Then some property investors have also agreed so where should we doubt,” Bahlil explained.
“We provide incentives for a good financial center, we put it there. So, for example, if people still doubt that FIFA is not a fried bean organization, they want to invest their financing to build a field there in collaboration with PSSI, we have seen the land,” he continued.
Bahlil, who is also the former Chairman of HIPMI, said that IKN has bright prospects, so he invited the private sector and other parties to participate in the success of this project.
“I am a former businessman, so when I see the location, I know this is good stuff, I make sure that the incoming investment is not only from within the country but also abroad,” he remarked.
Bahlil is very optimistic that IKN will be realized, because the international world has confidence in the Indonesian government under the leadership of President Joko Widdodo, as evidenced by the realization of investment from foreign parties (FDI) of 53%.
“I want to say that the global trust in the government under Pak Jokowi’s leadership is very extraordinary, it is evidenced by Rp. 1,207 trillion of our investment realization in 2022, 53% of which is FDI. And our FDI grew 43%, and our PMDN grew 29%, meaning that there is no problem, especially since this investment has clearly entered our country,” he explained.
Bahlil emphasized that he has collaborated with the Head of the Archipelago Capital Authority (IKN), Bambang Susantono to provide a red carpet to investors and assured them that they will provide convenience in licensing matters.
“The next thing is that we, together with the Head of the IKN Authority, have made all kinds of incentives for friends who invest there, all government licenses are taken care of, please bring the technology, they look for the market and if there is a workforce with stronger skills, bring it there,” Bahlil explained.
In addition, Bahlil said, investment and extraordinary trust in the government must be maintained, especially entering the political year in 2023, political stability and security are very important to be jointly guarded so that it remains in a conducive atmosphere.
“This means that we must be careful in our country, so political stability will be an important benchmark to ensure the sustainability of our economy. In my opinion, the political stability that we must maintain well, the shucks and tadpoles must end, no more shucks and tadpoles,” Bahlil concluded. [sources/photo
