President Joko “Jokowi” Widodo appointed Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan as the head of the investment acceleration task force team for the Nusantara Capital City (IKN).
The information was delivered by the Head of the IKN Authority Bambang Susantono after a restricted meeting with President Jokowi and relevant ministers on Monday (15/5).
“A special task force team was also formed which was chaired by the Coordinating Minister for Maritime Affairs, Mr. Luhut,” Bambang said, adding that the task force will coordinate inter-departmental communication between institutions to support investment in IKN.
Bambang stated that Luhut’s job would be to facilitate the coordination among ministries and relevant institutions, managing the work of bringing in investment to projects in and around IKN.
Task force strategy to expedite investors in IKN projects
Luhut also holds the position of Chairman of the IKN investment acceleration task force. He has previously led some ad hoc institutions, such as Deputy Chairperson of the Committee for Handling COVID-19 and National Economic Recovery (KPCPEN), the Coordinator for Enforcement of Public Activity Restrictions (PPKM) for Java-Bali, the Chairperson of the National Team for Increasing Use of Domestic Production (P3DN), the Chairperson of the Steering Committee for Rescue of 15 National Priority Lakes, and the Chairperson of the Jakarta-Bandung Fast Train Committee.
Spokesperson for the minister, Jodi Mahardi said that the appointment of Minister Luhut as head of IKN investment task force is based on several considerations.
Firstly, Luhut will oversee and coordinate all the institutions responsible for attracting investors to IKN. The main point is to achieve harmonization between the IKN Authority, the regional government, and ministry-level institution along with the Investment Ministry and other technical ministries, as currently the IKN Authority and the specialized ministries are still operating independently resulting in a less effective approach to attracting investors.
Secondly, Minister Luhut will align all agencies’ work plans and targets. Establishing a task force is a strategy for the government to expedite investor involvement in the IKN projects. As of May 15, the IKN Authority has received 209 investment commitments. However, only 36 investors have expressed interest and proceeded to the next stage by signing a non-disclosure agreement (NDA).
According to Bambang, the signing of the NDA would lead to a more comprehensive discussion on investment, facilitated by the exchange of data between the government and the investors. As a result, investors will proceed with conducting feasibility studies and developing business plans.
“This does indeed require time. However, Mr. Doni [Vice Chairman of the IKN Authority] and I have been requested to accelerate the proceedings to fulfil the investors’ requirements in the field, in compliance with the relevant regulations,” Bambang added.
Additionally, the IKN investment task force will also conduct promotional tours to several countries to showcase the projects at IKN.
Ensuring clear lands and service center for IKN investors
Since August 2022, the government has designated the state budget to develop basic infrastructure, which is expected to attract investors to IKN. However, most investors still need clarification on project status, incentive regulations, and the process of land acquisition.
Regarding these matters, the government has formed a land sector task force to ensure that the land offered in IKN to investors is “clean and clear”, according to Bambang.
“What will be offered to the investors are ready lands that already have the price, so they can immediately consider them based on topographic conditions, geology, access, and so on”.
With this mechanism, it is expected that clear information on the offered lands would allow IKN investors to formulate sharper business plans.
Additionally, the authority has been tasked with creating a one-stop service center consisting of ministries and other relevant institutions to facilitate investors in obtaining information. With this system, investors could get the best prices based on the latest data and information.
