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IKN Won't Need State Budget for Next 10 Years, Says OIKN

4 March 2024 22:33 WIB

TEMPO.CO, JakartaThe Nusantara Capital City (IKN) Authority claimed that the government will not need to use the state budget to finance Indonesia's new capital project for the next ten years thanks to a large amount of incoming investment.

“We predict this based on the investors’ interest in IKN which continues to increase,” OIKN deputy for finance and investment, Agung Wicaksono, said in Penajam, East Kalimantan, on Sunday, March 3.

He explained that within the next six months from September 2023 to February 2024, the investment value would touch Rp50 trillion. “And we predict that throughout this year, the investment is likely to hit Rp55 trillion,” he added. This estimated investment is greater than OIKN's target of approximately Rp100 trillion by the end of the year.

Agung believes that if the investment value reaches at least Rp100 trillion per year, the new capital will be fully operational within the next ten years, in line with President Jokowi's expectations, which would amount to approximately Rp1,000 trillion.

“If the prediction is correct, the state budget will no longer be needed for the development of the Nusantara City,” he remarked.

Furthermore, Agung stated that China and Malaysia would invest approximately Rp40 trillion in the property sector of IKN this year, which is being developed in Penajam Paser Utara, East Kalimantan.

ANTARA

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