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IKN Authority Chief Addresses Investment Concerns with Insights on Transparency and Foreign Collaborations

IKN Authority Chief Addresses Investment Concerns with Insights on Transparency and Foreign Collaborations
IKN Authority Chief Addresses Investment Concerns with Insights on Transparency and Foreign Collaborations. Image Source: setkab.go.id

Bambang Susantono sheds light on IKN’s transparency and foreign partnerships while also addressing criticism raised by a certain presidential candidate.

On 30th January, the chief of the Indonesian National Capital (IKN) Authority, Bambang Susantono, addressed concerns regarding investment returns in IKN. This also served as his response to the remarks previously made by Tom Lembong, the co-captain of the Anies Baswedan-Muhaimin Iskandar National Winning Team. Lembong was quoted as saying that numerous investors were hesitant to invest in IKN due to a lack of public transparency.

Susantono acknowledged that, even though foreign investors would require a lengthier process to invest in IKN compared to domestic investors, he also indicated that the total investment value since the project’s inception has reached Rp47.5 trillion. Meanwhile, private investors contributed Rp35.9 trillion.

I mentioned from the start that foreign investors need more time than domestic investors,” stated Susantono at the office of the Ministry of Communication and Information Technology.

Furthermore, Susantono claimed that foreign investors have started collaborating with their domestic counterparts. The total budget for IKN is Rp466 trillion, with funding from the State Revenue and Expenditure Budget (APBN) at Rp90.4 trillion, funding from business or private entities at Rp123.2 trillion, and funding from Government and Business Entity Cooperation (KPBU) at Rp252.5 trillion.

As far as I know, three countries—Malaysia, China, and Korea—are very serious because we seek a deal most beneficial for our country,” Susantono added.

Meanwhile, Alexander Stefanus Ridwan Suhendra, who is currently serving as the president director of PT Pakuwon Jati Tbk. (PWON) which is also one of IKN’s current investors, has previously remarked that he did not pay much heed to criticism made by anyone — especially the ones from the political spectrum.

“I think that the future is looking bright for IKN. Besides, at this point, it is difficult to cancel everything, right?” Suhendra told the press during the media briefing held by the IKN Authority virtually on 27th January. “The policy has been set up. The project has been set up. Thus, I believe there is a great future ahead. That is my choice. No need to think about anything else. I don’t think about politics either.”

Anies Baswedan, one of the presidential candidates in the running for the number one seat in the country, has been vocal about his opposition to the development of IKN. At one point, Baswedan was quoted as saying that he would rather “build 40 new cities so that hundreds of regencies that make up for them would grow in progress” than relocate the capital city of Indonesia from scratch.

During a press gathering on 29th January at the JiExpo Kemayoran, Jakarta, Baswedan doubled down his stance once again by underlining the importance of the micro infrastructure.

We need to build micro infrastructure so that all people can directly enjoy public facilities,” Baswedan elaborated. “We have seen how the government is focusing too much on the macro infrastructure than the micro infrastructure. The micro infrastructure should be improved so that families can enjoy what any development has to offer.”

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