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Bisnis Indonesia - Ibu kota baru: Asing selangkah lagi ke Nusantara
19 March 2024
By Alifian Asmaaysi and Hendra Wibawa
The Nusantara Capital City (IKN) Authority believes that foreign investors who are flocking to invest in the megaproject in East Kalimantan this year will fulfil the investment target of Rp100 trillion by the end of 2024.
IKN Authority Head Bambang Susantono said that the investment would be in the form of direct foreign investment (FDI) implementing the public-private partnership (PPP) scheme.
“Foreign investors are potentially entering. So, hopefully, investment can reach Rp100 trillion by the end of the year,” he said after the work meeting with Commission II of the House of Representatives (DPR) in Jakarta on Monday (18/3).
He explained that the process of foreign investment entering the IKN, implementing the PPP scheme, was in the finalisation stage at the Finance Ministry. Bambang is hesitant to provide further information about when the FDI will enter IKN. However, he assures that the next groundbreaking ceremony will not be conducted until at least May 2024.
“[Groundbreaking 6] has not been conducted. After this, we will hold the groundbreaking. We will see it ourselves,” he explained.
To sustain the operation and maintenance of facilities and infrastructure in IKN, Bambang will propose an additional budget of Rp3.5 trillion this year.
According to him, he will propose the additional budget to continue the operation and maintenance of several facilities and infrastructure that have been completed by the Public Works and Housing (PUPR) Ministry.
“This March, we are planning to propose an additional [budget] for 2024. In May, there will be further discussions on the maintenance of completed buildings and structures,” he explained.
Bambang said that the IKN Facilities and Infrastructure Deputy would use Rp2.17 trillion from the additional budget to support 22 programmes.
Meanwhile, the Green and Digital Transformation Deputy will utilise Rp864.39 billion from the additional budget, while the Environment and Natural Resources Deputy will use Rp457.2 billion.
Next, the Social, Cultural, and Community Empowerment Deputy will use Rp57.44 billion, while the Planning and Land Deputy will use Rp15.03 billion.
Bambang explained that most of the additional budget would be allocated to support the building handover plan with the PUPR Ministry.
Bambang also reported that a budget realisation of Rp271.71 billion was absorbed in 2023 to support IKN development.
“We could achieve 95% because it was close to what was required. [The Furthermore, Bambang explained that the budget realisation of Rp271.71 billion was absorbed by nine units in echelon 1 to support the development of the new capital city in North Penajem Paser, East Kalimantan.
According to him, the IKN Authority Secretariat absorbed the majority of the budget reaching Rp174.13 billion. Next, the Planning and Land Deputy absorbed Rp20.3 billion.
The third place goes to the Environment and Natural Resources Deputy that absorbed Rp14.89 billion, followed by the Green and Digital Transformation Deputy that absorbed Rp13.18 billion and the Controlling the Development Deputy that absorbed Rp12.15 billion.
Next, the Funding and Investment Deputy absorbed Rp11.13 billion, the Social, Cultural, and Community Empowerment Deputy absorbed Rp10.53 billion, the Facilities and Infrastructure Deputy absorbed Rp8.76 billion, and the Legal and Compliance Deputy absorbed Rp8.14 billion.
This year, the budget allocation of IKN Authority reaches Rp434 billion for all deputies and secretariats to support two primary programmes, including the strategic area development programme that is allocated 46.7% or Rp202.89 billion.
“People see that the budget [for IKN development] requires trillions. However, from our perspective, the amount used for coordination, collaboration, communication, and consolidation is around Rp434 billion,” Bambang said.
Malaysia and China
Regarding foreign investment, Deputy for Funding and Investment of the IKN Authority Agung Wicaksono explained that three foreign investors were ready to invest in IKN, specifically in the housing sector.
The three foreign investors are from Malaysia and China, with one of them being part of a consortium with local companies.
“I cannot provide the exact value as it depends on the tender results. However, from seven investors, around Rp50 trillion of capital expenditure (capex) can be realised. Three of these seven investors are foreign investors,” Agung explained.
Based on Bisnis’ records, one of the companies mentioned by the IKN Authority is Citic Construction from China. Additionally, the Malaysian property company IJM Corporation Berhad will construct 20 housing towers for civil servants in IKN, while Maxim Properties will construct 10.
Meanwhile, a member of DPR Commission II, Wahyu Sanjaya, is reminding the IKN Authority to prepare a maintenance system for IKN.
“They do not know the condition of the product later. So, a product will be handed over, but it needs to be maintained. Please keep this in mind,” he stated.
He is also asking the IKN Authority to monitor the detailed spatial planning (RDTR) of IKN so that it is different from other major cities that experience traffic congestions.
“I am reminding them that this is a new city. Let us ensure that the spatial planning is organised, so we can effectively plan the public transportation routes,” Wahyu said.
