Friday, June 14, 2024

Jokowi announces surge in foreign investment for IKN amid authority leadership change

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President Joko “Jokowi” Widodo announced a major boost in foreign investment for the Nusantara Capital City (IKN), following his recent visit to oversee groundbreaking projects and inaugurate key infrastructure in the country’s new capital city.

President Joko Widodo has announced that the new capital city is set to receive a significant increase in foreign investment in the coming months. This announcement comes amid concerns over the recent resignations of two top administrators from the Nusantara Capital City (IKN) Authority.

During his visit to Nusantara in East Kalimantan on June 4, 2024, President Jokowi oversaw the groundbreaking ceremonies for projects initiated by automotive group Astra and Gunadarma University.

He also inaugurated the Sepaku Semoi Dam, which is expected to serve as one of the new city’s primary sources of clean water.

Despite the recent resignations, Jokowi emphasized that the development of IKN remains on track. He highlighted the commitment of Emaar Properties, a prominent United Arab Emirates-based company, which plans to make a substantial investment next month.

According to Jokowi, Emaar has recognized Nusantara as an ideal investment destination, likening it to “owning the future.”

The President also urged other investors to seize the opportunity to invest in IKN before land prices rise. He reassured stakeholders that the departures of the IKN Authority Chair Bambang Susantono and Deputy Dhony Rahajoe were for personal reasons and would not impact investor confidence or the ongoing development.

To further bolster confidence, Jokowi announced the initiation of the Nusantara Sustainability Hub, a cutting-edge sustainable energy innovation and research center. This project, supported by the Bakrie business group and Stanford University’s Doerr School of Sustainability, aims to establish an international standard for sustainability in Indonesia’s new capital.

Investment Minister Bahlil Lahadalia echoed Jokowi’s statements, dismissing any concerns about the potential negative impact of the leadership changes on investment. He confirmed that infrastructure development in IKN is progressing well, with several investment-funded projects already underway.

Trade Minister Zulkifli Hasan expressed optimism about the future of IKN, comparing its potential to that of Washington, D.C., in the United States. He noted that while the city’s facilities are still under development, once completed, it will be a remarkable and vibrant hub.

As preparations for Indonesia’s 79th Independence Day celebrations in August continue, Jokowi reaffirmed his plan to start working from the new capital in July, showcasing his commitment to IKN’s successful development and future.

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