TEMPO.CO, Jakarta - The deputy head of Planning and Investment at the Nusantara State Capital Authority (IKN Authority), Agung Wicaksono, said his office had collected 421 letters of intent from investors. He said they included pioneering investors who had seriously invested in new capital projects.

Agung Wicaksono, deputy head of planning and investment at the Nusantara State Capital Authority (IKN Authority), said his office had collected 421 letters of intent from investors. He said they included pioneer investors who had seriously invested in new capital projects.

"Well, there are already 45 pioneer investors, so far,” Agung said when met at the Ministry of Public Works and Public Housing on Friday, July 12.

The IKN Authority targeted Rp100 trillion investment by the end of 2024. Meanwhile, it bagged Rp51.3 trillion in investment from the first to the sixth groundbreaking. Agung said his side was still working to achieve the rest of the target.

The new capital development in East Kalimantan reportedly requires about Rp 466 trillion. Twenty percent of the funding will come from the state budget and 80 percent from non-government sources.

The government has issued Presidential Regulation No. 75/2024 on the Acceleration of IKN Development. The decree, which was signed by President Jokowi on Thursday, July 11, 2024, regulates Business Use Rights (HGU) and Building Use Rights (HGB). In Article 9, the government states that HGU can be extended to 190 years and BU to 160 years.

Suryadi Jaya Purnama, a member of House Commission V, argued that the decree regulating land rights was no guarantee that it would attract investors. He said that the land rights issue was not the reason why investment in IKN was slow. However, the characteristics of investment are public infrastructure, while the public does not yet exist. Even if there were, it would not be up to 5 million people.

"Investment calculations will be profitable only if there are at least 5 million inhabitants in 10 years," he said in a written statement, Friday, July 12, 2024.

Riri Rahayu

Editor's Choice: Jokowi Signs Decree to Speed Up IKN Development, Offers 190-year Land Rights to Investors

Click here to get the latest news updates from Tempo on Google News