No Investors From Overseas Yet, Trade Minister Zulhas Convinced The US To Invest In IKN

Minister of Trade (Mendag) Zulkifli Hasan. (Photo: Doc. Antara)

JAKARTA - President Joko Widodo (Jokowi) said that until now there has been no realization of foreign investment in the Indonesian Capital City (IKN). However, the Archipelago Capital Authority (OIKN) denies that there is no foreign investment in the Archipelago Capital, aka IKN. OIKN claims that investors from abroad will also invest in this new capital city.

The government did not remain silent. Most recently, the Minister of Trade (Mendag) Zulkifli Hasan convinced United States (US) investors to invest their capital in the National Capital (IKN), because this area will become a super hub equipped with industrial areas and strategic trade routes.

This was conveyed by the Minister of Trade when attending the Indonesia-US Business Forum with the theme "Trade and Investment Opportunities in IKN" at the Consulate General of the Republic of Indonesia in New York, USA, on Monday 20 November.

"The development of IKN is a large project that requires investment and collaboration from various parties. Private investment is very wide open in various sectors, including trade supporting sectors such as infrastructure, transportation, and logistics," said the Minister of Trade in a written statement, quoted from Antara, Tuesday, November 21.

The Minister of Trade assured investors not to hesitate in exploring trade and investment opportunities in Indonesia because Indonesia's economic growth remains strong amidst uncertain global economic conditions.

In the third quarter of 2023, the Indonesian economy grew 4.94 percent annually (YoY) with inflation remaining at 2.28 percent in September 2023.

Furthermore, it is hoped that investment in IKN can encourage economic growth that is beneficial for everyone, including Indonesian MSMEs.

"The Ministry of Trade will also work continuously with the IKN Authority and all related agencies, in creating a National Capital of the Archipelago that is based on economic equality, and utilizing IKN to create a stronger and more transformative trade sector," said the Minister of Trade.

Data on Indonesia's investment realization until September 2023 reached IDR 374.4 trillion and has absorbed a workforce of 516,467 workers in the third quarter of 2023.

The five main sectors in Indonesia's investment realization include the manufacturing sector, pharmaceutical and chemical industry, mining, paper and processing industry, and transportation, warehousing, and telecommunications.

The US private sector has also invested heavily in Indonesia, especially in the mining, machinery, and pharmaceutical sectors. In 2022, the realization of US investment in Indonesia will reach 3 billion US dollars and is included in the top 5 countries of origin for investment in Indonesia.