Head of the Authority: If Central Java becomes an IKN Partner, it will receive incentives.

Head of the IKN Authority Basuki Hadimuljono when receiving a visit from the Governor of Central Java Ahmad Luthfi and his deputy and deputy regent throughout Central Java at the IKN Authority office, Thursday, August 6. (Photo: Dok. IKN Authority)

JAKARTA - The Nusantara Capital Authority (IKN) offers fiscal incentives to the Central Java Provincial Government (Pemprov) if it becomes a partner in developing IKN.

This was conveyed by the Head of the IKN Authority Basuki Hadimuljono when receiving a visit from the Governor of Central Java Ahmad Luthfi and his deputy regent and deputy regent throughout Central Java at the IKN Authority office, Thursday, August 6.

The meeting discussed the potential for collaboration and investment opportunities in Central Java at IKN.

"We always serve investors who enter. If Central Java becomes a partner of the IKN Authority, there will be fiscal incentives," said Basuki as quoted from a written statement, Friday, August 7.

Basuki said the IKN Authority continues to open up space for collaboration with various regions in Indonesia, including the Central Java Provincial Government.

According to him, inter-regional synergy is one of the important factors to strengthen the IKN development ecosystem as an inclusive and sustainable political capital.

The opportunity for cooperation with the Central Java Provincial Government is not only limited to investment.

Cooperation can also cover various strategic sectors that support the development of the IKN area, ranging from the provision of goods and services, human resource development to the creative economy and tourism sectors.

During the meeting, the IKN Authority also explained the development of the IKN, including the funding scheme used to support the acceleration of development.

Currently, the construction of IKN is supported through the State Budget, Government Cooperation with Business Entities (KPBU), private investment, and grants.

Until now, the estimated private investment that has entered the IKN has reached Rp74.54 trillion from 67 investors.

Meanwhile, the value of projects through the KPBU scheme reached IDR 134.22 trillion.

Central Java Governor Ahmad Luthfi welcomed the opportunity for collaboration between the Central Java Provincial Government and the IKN Authority.

He said, development in Central Java has been carried out through a collaborative approach involving all stakeholders.

"We are building Central Java collaboratively by embracing all stakeholders, including the media, the business world and various elements of society," said Ahmad Luthfi.

The visit of Ahmad Luthfi together with the ranks of the regent and deputy regent throughout Central Java is the first step in exploring cooperation between the Central Java Provincial Government and the IKN Authority.

Through the meeting, both parties hope to strengthen synergy in encouraging investment, expanding opportunities for inter-regional cooperation, and creating mutually supportive economic benefits for the development of IKN and the region.