Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Arsjad Rasjid invited domestic entrepreneurs to support the program to move the State Capital (IKN) to East Kalimantan by exploring business opportunities and becoming part of Indonesia's new history and civilization.
"I invite fellow entrepreneurs to build new growth routes for Indonesia through investment, to be part of the future of Indonesia Baru. Let's make new history and civilizations, realize new economic growth to achieve the vision of Indonesia Gold, become the 4th largest economic-powered country in the world in 2045 by making the development of IKN Nusantara successful," said Arsjad in a statement in Jakarta, quoted from Antara, Wednesday, October 19.
Arsjad said the new capital city in East Kalimantan is a symbol of a new Indonesia that is ready to answer global challenges, as a city that relies on connectivity, a smart city, that is livable, and sustainable.
From an economic perspective, according to him, the new IKN, IKN Nusantara, could become Indonesia's new axis of strength that can optimize the economic potential of all regions of Indonesia.
According to him, the presence of IKN Nusantara on the island of Kalimantan will shift the center of Indonesia's economy, which has been dependent on the island of Java. Originally, there would be a new balance, both in terms of population, growth in new economic centers, and economic equity.
"So far, more than 60 percent of the national economic contribution comes from Java Island, with a population density level of 57 percent. This raises complicated problems with economic growth and the pace of urbanization, including environmental carrying capacity such as the availability of clean water, clearing forest areas, and the depletion of green open space," said Arsjad.
IKN development will be carried out in five stages, from 2022 to 2045. In each of these stages, IKN development will protect forests, flora and biodiversity, inclusiveness from the population aspect, in order to maintain harmonious natural conditions and forests in Kalimantan.
In the 2020-2024 RPJMN, the estimated funds needed for the initial stage of development reached Rp466 trillion, assuming funding from the APBN of Rp90.4 trillion, business entities/privates of Rp123.2 trillion, and KPBU of Rp252.5 trillion.
With this scheme, funding from the APBN only takes 20 percent portion, while the rest is from cooperation between the government and business entities, including contributions from private investors, both from within and outside the country.
A number of conveniences for investing are being discussed by the government, including providing HGU for 95 years, HGB 80 years, as well as a number of fiscal incentives such as tax holidays, super tax deductions, exemption from import duties, PPh, and VAT.
Previously, President Joko Widodo said that the relocation of the State Capital was not just to move the ministry building, as well as the relocation of the Presidential Palace building and the Vice Presidential Palace building.
The President said that it was not the physical that was transferred, but also to build a new work culture and a new economic mindset.
According to him, Indonesia as a big country must dare to step up and have a big agenda for the progress of the country. If you don't dare to transform from now on, it will be difficult for Indonesia to become a developed country.
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