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DISMISSING the capital city of the Nusantara (IKN) as having minimal investment, it turns out that investment from outside Indonesia has now made investment deals and has amounted to approximately IDR50 trillion.
According to the Minister of Investment/Investment Coordinating Board (BKPM) Bahlil Lahadalia, he dismissed the statement by Indonesian Vice-Presidential Candidate Mahfud Md. in the second 2024 Presidential Election debate which stated that the Capital of the Archipelago (IKN) IDR50 trillion in foreign investment had entered IKN.
Bahlil emphasized that this statement was wrong because in reality many companies had invested in IKN, including companies from abroad whose investment value reached IDR50 trillion.
“Those from outside Indonesia have now made investment deals and have brought in around IDR50 trillion. These foreign investments generally come from companies in Asia and Europe which operate in the service sector, such as hotels, malls, educational facilities and hospitals,” he said.
However, he explained that foreign investment will only enter the second cluster after all supporting infrastructure has been completed. The infrastructure must be completed first. So, the first cluster of our policy is to prioritize domestic investment, they (foreign investment) are included in the second cluster.
“Apart from investment from foreign countries, IKN is also said to be of interest to domestic investors. “It is recorded that several large companies such as Mayapada and the Agung Sedayu Group have invested in the capital city of the archipelago,” Bahlil remarked.
He added that it is true that there is a Agung Sedayu Group, Mayapada. Agung Sedayu even has 40-50% (development progress) of a five-star hotel. Then there are also hospitals and sports centers.
On that occasion, Bahlil also explained that the financing scheme for IKN development comes from the State budget (APBN) with a total investment value of IDR400 trillion-IDR560 trillion, depending on how much inflation increases.
“Well, of that total, 20% is financed by the APBN, and this is not done for 1 year or 2 years, but for the remaining 15 to 20 years it is investment,” he concluded. [antaranews/photo special]
