Artikel & Publikasi
Kamis, 18 Januari 2024
INVEST Magazine The Future Smart Forest City of Indonesia
Dear Investors, In 2019, the Government of Indonesia took a bold and visionary step by relocating the nation’s capital from Jakarta to East Kalimantan. The province was selected due to its strategic location at the geographical center of the country and its lower vulnerability to natural disasters.
The Ibu Kota Nusantara, or IKN, is built upon three profound visions. Firstly, it embodies our national identity through spatial design that fosters the spirit of mutual cooperation known as “gotong royong”. Secondly, it pledges to ensure the sustainability of society, the economy, and the environment by preserving the lush Kalimantan forests. Lastly, it aims to create a smart, modern, and globally recognized city through information and communication technology.
To bring this visionary project to life, the government allocated a budget of Rp 466 trillion, with 20% funded from the State Budget. The remaining funding was sought through the government’s invitation to investors via the public-private partnership (PPP) scheme to contribute to the construction of IKN.
To facilitate potential investors, the Ministry of Investment/BKPM introduced Government Regulation No. 12/2023. This serves as a legal framework for granting business permits, streamlining the business process, and providing incentives for investors in IKN.
The development of IKN is making steady progress. As of October 2023, it had achieved 52.9% completion, and local investors kick-started their commercial investment last September. This demonstrates the unwavering commitment of the government to the IKN project and the confidence that investors have in our nation.
We warmly welcome investors who are keen on joining the IKN project. With business certainty and an increasing number of investors embracing this transformative endeavor, IKN as a liveable and sustainable city would be ready in 2024.
Bahlil Lahadalia
Minister of Investment/
Chairman of BKPM
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