Jokowi's New Task Force Signals Failure to Attract Investment in New Capital, House Member Claims

TEMPO.CO, Jakarta - Member of Commission V of the Indonesian House of Representatives, Suryadi Jaya Purnama, highlighted President Joko Widodo or Jokowi's move to form the Investment Acceleration Task Force in the Nusantara Capital City (IKN). Suryadi said the task force was formed because the government had difficulty garnering investment in IKN. 

Previously, Jokowi had also formed the Land Acquisition and Investment Acceleration Task Force in IKN. According to Suryadi, the two task forces have similar duties.

"The new task force alludes to the failure of the former task force in attracting investment to IKN,” said Suryadi in a statement received by Tempo on Wednesday, August 7, 2024. "The (task force) members keep changing but still the investment issue is not resolved.” 

President Jokowi formed the Land Acquisition and Investment Task Force in 2023, led by the Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan. 

However, This year, the president formed another task force to expedite investment in the new capital city led by Investment Minister Bahlil Lahadalia.

"If the Luhut-led task force is successful, there would be no need to form a new task force. Extending the task force’s term of office would’ve been sufficient,” he said. Luhut’s task force would be on duty until December 31, 2024. 

Suryadi then suggested the government review the plan to move the nation's capital city to IKN. "If the government forces the IKN construction without any major investors, it would potentially burden the State Budget. This would be a departure from Jokowi's original promise at the beginning of the planning for the new capital city,” Suryadi said. 

The IKN construction is estimated to require over Rp466 trillion. The government allotted 20 percent of the State Budget, or equal to Rp90 trillion for development while the rest will rely on investments. 

The government has disbursed Rp72.5 trillion for IKN from 2022 to May 31, 2024. Meanwhile, the new capital city has only garnered over Rp51.3 trillion throughout six project groundbreakings. 

President Jokowi formed the new task force according to Presidential Decree Number 25/2024 inked on Monday. Per Article 3 of the Presidential Decree, the task force is mandated with nine key responsibilities:

1. Enhancing policy coordination between the IKN Authority, relevant ministries/institutions, and partner regions.
2. Aligning land acquisition, development planning, and spatial planning, as well as land development and use, for priority IKN investment activities.
3. Coordinating environmental management and approval for investment activities in IKN.
4. Implementing domestic and international promotional campaigns to attract investment to the IKN.
5. Fostering synergy among stakeholders for developing financial centers in the IKN.
6. Facilitating business permit acquisition for investors in the IKN.
7. Streamlining business processes, land rights acquisition, and investment incentives.
8. Coordinating the provision of supporting infrastructure for investment acceleration.
9. Establishing a supervisory and control mechanism for investment activities.

RIRI RAHAYU

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