OIKN Invites Singapore To Support Investment In IKN Nusantara

The Head of the Archipelago Capital Authority (OIKN) invited Singapore to support investment in the capital city of the archipelago. BETWEEN/HO-OIKN

The Archipelago Capital Authority (OIKN) invited Singapore to support investment in the National Capital City (IKN) of the Archipelago.

"We will invite many business investors to participate in the development of this city," said OIKN Head Bambang Susantono in a statement quoted by ANTARA, Wednesday, June 7.

Bambang said that until the end of the year OIKN had several commitments with international investors in developing the archipelago.

"There are at least five countries that are in the process (of agreement), including South Korea, then Japan, China, Germany, and also the UAE (Union of the Arab Emirates)," he said.

Bambang said the development of the archipelago has two machines to work with each other. The first is the APBN to build basic facilities and infrastructure with a target of working until 2024. The second is domestic investors.

According to him, the MSME sector can be involved in building the archipelago.

"OIKN is not only targeting large investors, but also MSMEs," he said.

The current cooperation agenda carried out by OIKN with various institutions is in making blueprints and master plans for the archipelago. Another thing is in campaigning for the process and embodiment of the Sustainable Development Goals (SDGs).

Especially for investors, Nusantara will become a city that consistently and continuously implements its commitments in the fields of Environment, Social, and Governance (ESG).

There are three things that are the focus of investors. First, regarding the number of residents who inhabit, where at least in 2024 the archipelago will be inhabited by 200 thousand people.

Second, regarding access and connectivity, in 2024 there will be a toll road connecting Balikpapan-Nusantara with a period of 40-50 minutes. Third, related to incentive stimulus.

According to Bambang, the capital city of Nusantara is very promising and will be sustainable.

First, we have a law, a very strong law, a legal basis for us to continue and guarantee the sustainability of this project for the development of the archipelago. Second, we provide several incentives, which exceed the average incentives we have in Indonesia," he said.

He said, in general, tax holidays amounted to Rp. 100 billion, but in the archipelago it was enough with only Rp. 10 billion to get 20 or 30 years of tax holidays. In addition, the rate of return will get more than usual, which is more than 11-13 percent.

"In terms of investment attraction, I believe, this is very interesting based on character in your business to invest in the capital city of Nusantara in Indonesia," said Bambang.

Previously, President Joko Widodo paid his attention to the investment sector for the development of the capital city of Nusantara which was very promising to Singaporean entrepreneurs.