Government Encourages Participation In Japan's Private Sector In IKN Development

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Public Works and Public Housing (PUPR) continues to attract foreign investors, including Japan, to invest in the capital city of Nusantara (IKN), East Kalimantan.

Head of the IKN Infrastructure Development Task Force (Satgas) Danis H. Sumadilaga said this needs to be done because IKN development will come from investor funding of 70-80 percent.

In order to attract private investors from Japan, as many as 13 journalists from various Japanese media who were accompanied by the Japanese Embassy to Indonesia and the Japan International Cooperation Agency (JICA) Indonesia visited the capital city of the archipelago (IKN), on Tuesday, July 25.

"Through this media visit, we want to prove the seriousness of the Indonesian government in building IKN and convincing the private sector of Japan to invest in IKN," said Danis through his official statement, Wednesday, July 26.

Danis said that through this visit, a number of Japanese media could directly see and collect data on the progress of IKN development in order to encourage the participation of the private sector from the country in the development of IKN.

"Currently, we are focusing on the construction of stage 1 as many as 39 work packages, of which the overall progress currently reaches 36 percent. Especially for the Presidential Palace Area, now it is 20 percent, we are targeting it to be completed and used in the Republic of Indonesia's Independence Day in 2024," he said.

The Japanese media group itself visited the Sepaku Semoi Dam, whose construction progress has reached 93 percent and is targeted for an impact in August 2023.

Kemudian, melihat Intake Sepaku yang sudah selesai 100 persen, serta lahan IPA yang difunded oleh hibah pemerintah Korea Selatan yang saat ini sedang proses DED.

Furthermore, the group visited the IKN Zero Point, Construction Worker Residential, and View Tower of the West National Asymptomatic Road to see the progress of the construction of the Presidential Palace Area.

Furthermore, Danis revealed that Indonesia has collaborated with Japan through JICA for IKN development, namely bringing in experts/insinyur/architek from Japan in the context of quality assurance to ensure that work has met international standards.

"Now, we focus on exploring the potential for cooperation with Japan related to investment," he said.

In addition, Danis also ensured that IKN development would still pay attention to environmental sustainability or according to the forest city concept. "The Ministry of PUPR and the Army Retired Association (PPAD) will start planting 42,000 trees in the IKN area in the next 2-3 weeks," he added.

Until now, based on data from the IKN Authority, Letter of Intent (LOI) or an interest letter that has been received by his party now reaches 242 LOIs from various local and international investors.