Jokowi Reveals IKN Development Only 15 Percent During The 79th Anniversary Ceremony Of The Republic Of Indonesia

President Jokowi (right) accompanied by Minister of State Secretary Pratikno (left) and TNI Commander General Agus Subiyanto (medium) delivered a press statement before leaving for the UAE, Tuesday (16/7/2024). (ANTARA)

JAKARTA - President Joko Widodo (Jokowi) estimates that the capital city of the archipelago (IKN) will only build around 15 percent when the ceremony for the 79th Anniversary of Indonesian Independence is held on August 17, 2024.

"So don't imagine that the August 17 Ceremony has all been done. Unlike that, many are new in my opinion. At least on August 17, everything will be calculated as a whole, maybe 15 percent (so)," said the President when met before leaving for a state visit to the United Arab Emirates from Halim Perdanakusuma Air Base, Jakarta, Tuesday, July 16, confiscated by Antara.

He reiterated that IKN is a long-term dream, whose construction will not be completed in just 2 or 3 years.

"This still requires investment, still requires investors from within and outside (abroad). That's what we are pursuing," said Jokowi.

In order to accelerate investment, Jokowi has signed Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of Development of the Capital City of the Archipelago (IKN), which generally regulates the provision of incentives for potential investors who participate in building services and facilities at IKN.

Incentives for business actors are given, among others, in the form of guaranteeing certainty of the term of right to land mentioned in Article 9.

In Article 9 paragraph 2, the right to use (HGU) is given up to 190 years which is given through two cycles or for 95 years in one first cycle and 95 years in the second cycle.

According to Jokowi, the rules for providing incentives to potential investors in the form of land HGUs up to 190 years at IKN aim to attract large investments, both from within and outside the country.

The government also guarantees building rights (HGB) with a maximum period of 80 years in the first cycle and can be given back in the second cycle with a maximum period of 80 years, bringing the total to 160 years for HGB.

Building rights are also granted with a maximum period of 80 years in the first cycle and the next 80 years in the second cycle. The three rights to land are of course given based on the criteria and stages of evaluation.

Meanwhile, infrastructure and infrastructure that are the government's obligations, said Jokowi, will soon be completed using the state budget.

"If the government is the obligation of government buildings, presidential palaces, vice presidential palaces and therefore 100 percent of the state budget," he said.