Minister AHY: The Main Strength Of IKN Development Is In Investment

Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Agus Harimurti Yudhoyono (AHY). (Aris Nurjani/VOI)

JAKARTA - Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Agus Harimurti Yudhoyono (AHY) revealed that the main strength of the development of the capital city of the archipelago or IKN in East Kalimantan lies in investment.

"In fact, now we are focusing on investment, because the main strength of building masterpieces like this is of course lies in investment. We don't want to go all out of the APBN, of course, but with the investments that we channel both from domestic and foreign investments, that's why the Ministry of ATR/BPN has an important role with clean and clear land, it can be said that," said AHY quoted from ANTARA, Wednesday, February 28.

With a clean and clear land, he continued, investors have confidence and legal certainty in running their business at IKN.

"We hope that investors also have confidence and legal certainty of land rights that can be used for commercially and business-developed businesses are also expected to develop," said AHY.

According to him, IKN not only attracts investment but can also develop the economy in the surrounding area as well as the national economy.

"This is our optimism, Indonesia must continue to have an attraction for investors," said AHY.

As much as 80 percent of the Nusantara State Capital (IKN) development budget comes from the Government and Business Entity Cooperation (PPP) scheme and direct private investment, while the remaining 20 percent is estimated from the state budget.

Based on the Attachment of the IKN Main Plan in Law Number 3 of 2022 concerning IKN states that in order to support the preparation, development, and transfer, as well as the implementation of a special government of IKN, the government carries out a synergy of funding sourced from the State Revenue and Expenditure Budget (APBN) and other legitimate sources in accordance with the provisions of the legislation.

The synergy of funding is needed so that there is fiscal continuity by making various efforts, among others, by optimizing the use of creative and innovative funding schemes while maintaining accountability.