Budi Gunawan Talks About IKN Again, Says His Development Goal Is For New Economic Growth

Photo via Antara

JAKARTA - Head of the State Intelligence Agency (BIN) Budi Gunawan emphasized the construction of the National Capital City (IKN) of the Archipelago as a new center of national economic growth.

"The transfer of IKN to a relatively raw but very potential area is based on a vision of a sustainable economy, not only from an environmental aspect, but also from an economic growth aspect," Budi said in a written statement in Jakarta, Saturday, April 2.

He explained that growth which had been concentrated in Java had to be expanded to other areas. Kalimantan was chosen because of its ideal position and potential for sustainable growth.

Budi said that the potential is being managed by the Government, so that in time it will automatically become an engine of sustainable growth.

According to Budi, the government started with the construction of basic infrastructure, followed by the construction of palaces and government buildings, so that the transfer of state apparatus could be carried out in stages until 2024.

Simultaneously, the Government, through the APBN, will also build basic infrastructure in all IKN areas which will be the trigger for the sustainable development.

"Public crowdfunding in the sense of philanthropy or donations is only part of it, as a symbol of the nation's mutual cooperation to realize the nation's capital city. The rest, the energy for IKN growth still comes from its sustainable economic potential," said Budi.

He said crowdfunding from a sustainable economic perspective is a blended finance scheme that is widely adopted for the success of colossal projects in various parts of the world.

This scheme is not only able to raise a large amount of capital, but can also provide energy for very long growth because it synergizes many resources for one big goal.

“This blended finance scheme is hinted at by Law Number 13/2022 concerning IKN. That in addition to being funded from the APBN, IKN Nusantara financing also combines funds obtained from SOEs, regional potentials, national banks, private companies, to individual community entrepreneurs. This scheme can meet the financing needs of IKN to become the center of growth for the next 10 to 20 years," said Budi.

According to Budi, the challenge is how to make instruments with attractive sustainable financial features. Primarily, by eliminating or reducing risks and increasing investment viability for the medium and long term.

"This is a big and long-term strategy for the future of IKN Nusantara. Learning from the failure of moving capital cities to other countries, we must optimize the sustainable economic potential of IKN Nusantara from the start," he said.

The potential for investment is to grow an area with six clusters, namely clean technology, pharmacy, agriculture, ecotourism, chemistry, low-carbon energy plus two supporting clusters in the form of 21st century education and smart city-industrial centers 4.0.

"IKN also has the potential to become a logistics superhub for the central, eastern and northern regions of Indonesia. The failure to relocate capital cities to other countries is due to the absence of industry, lack of growth energy," said Budi affirmed.