The Archipelago Capital Authority (IKN) is optimistic that the development of IKN development is still going in the right direction and can attract investment. It is estimated that 15 foreign investors will participate in early 2024.
To date, the authority has recorded 23 domestic investors who have initiated development at IKN with a total investment of IDR 41 trillion. Not only national scale companies, local investors from East Kalimantan also took part in this IKN development project.
Deputy for Funding and Investment, Nusantara Capital Authority, Agung Wicaksono, said that the development of the Central Government Core Area is a priority for domestic investors.
“Regarding direct foreign investors groundbreakingAs stated by the President, we will prioritize domestic investors first, because as you can see, domestic investors can do everything, and they are also partners, foreign investors can come in as partners. Yes, so, for me this is not a priority, compared to domestic investors,” he said.
According to Agung, foreign investors who are currently interested in being involved in IKN development, especially for residential use, are in three countries through the Government and Business Bandan Cooperation (KPBU) scheme.
“In terms of housing, the PPP companies are participating in the state, first of all Indonesia is still the largest, but then there are also those from China, even though there is one from China, this is the largest number of residents (building) interested, they are interested in building 60 towers,” he said .
Then. he continued, there are also two companies from Malaysia.
“So the total for residential PPP, to build housing for ASN, currently we calculate from the process that is already underway the total is around IDR 55 trillion, this is for building. So, when the selection is finished and it has beengroundbreakingthen at least this 55 trillion will begin to be realized,” he explained.
Not only residential, Agung said there were already foreign countries that would take part in the development technology smart city in IKN, which concerns urban systems, government services, access and mobility, safety and security, environment and sustainability, as well as livability and urban life.
“Smart city There are also many interested countries, if I may ask five, there is Korea, there is the United States, there is China, there is France, then there is Finland, that’s an example. And the size (of investment) will really depend, because there are quite a lot of sectors smart city,he said.
Cannot be charged to the APBN
Meanwhile, Professor at the Faculty of Business and Economics, University of Surabaya, Prof. Liliana Inggrit Wijaya, said that the size of the IKN development budget cannot be borne entirely by the APBN, so investors are needed to help finance this development project.
Of the total R466 trillion budget needed to build the entire IKN, only 20 percent was taken from the APBN, even though in reality the APBN funds used have reached around 30 percent. This cannot be separated from the fact that there have been no foreign investors entering, and there are still few domestic investors involved.
Legal certainty and a conducive political situation in the country, said Liliana, are basic problems that must be addressed so that foreign investors do not hesitate to invest in IKN. Resolving the issue of political risk and legal certainty will answer the doubts of investors who will enter even though there is an incentive scheme offered by the government.
“Well, the risk is weighted by foreign countries because he doesn’t have enough information about Indonesia’s conditions, of course he weights it using country risk, country risk. There is economic riskThere is political riskThere is social environmentbut at the moment I think political risk “It was given high weight by them,” he said.
Liliana, who is also Head of Finance and Investment Management, Faculty of Business and Economics, University of Surabaya, suggested restructuring the priority scale and budget efficiency to overcome the problem of a limited budget. This needs to be done so as not to sacrifice other items in the APBN as the main source of funding for all development in Indonesia. In this way, IKN development can continue, but still be based on existing financial realities.
“Organizing governance“It’s governance, so IKN must also be realistic, what is truly urgent is priority one, it is realistic that with existing funds it can be implemented first,” he said. (pr/as/ah)
