JAKARTA – Acting Head of the Ibu Kota Nusantara Authority (OIKN) Basuki Hadimuljono revealed the fate of foreign investment in IKN, which is zero to date.
It occurs while OIKN in 2024 targets the total investment that will go to IKN to reach Rp100 trillion.
Bisnis.com reported that Basuki remains committed to accelerating the interest of foreign investors to invest in IKN.
One of the ways is by sending a letter of intent (Lol) to start groundbreaking in July 2024.
“So far I have not (become Acting Head of OIKN), hopefully it can be done because the President asked for it immediately in order to do the groundbreaking in July 2024,” he said as per Bisnis.com.
Basuki also revealed that potential investors generally aim for an investment return or Internal Rate of Return (IRR) above 12%.
This, he said, is what is being studied by the government. This is because the government will generally provide construction support to make investment projects more attractive to investors if the IRR is below 11%.
“Until now, there are several letters that have just shown interest. It is currently being discussed by Mr Agung (Deputy for Funding and Investment, OIKN) for details. The IRR is usually the same whether foreign or national. If the IRR is above 12%, it must be attractive,” he added.
PUPR once denied that investors are not interested in IKN
The accusation that said that IKN is not marketable had been denied by the Ministerial Expert Staff for Technology, Industry and Environment of the Ministry of Public Works and Housing (PUPR) Endra S. Atmawidjaja.
In a conversation with The Editor at the Ministry of PUPR Building, Jakarta, Endra said that the government has not officially settled at IKN which will serve as the new capital of Indonesia.
“People are talking about investors not wanting to go to IKN. Yes, obviously, since the government itself has not yet settled,” he said.
Currently, he continued, the government is spiritedly building infrastructure to support IKN. One of them is a flat for the state civil apparatus (ASN) who will work full-time there.
He also said that the government prioritizes domestic investors to participate in the development of the IKN area.
If these local investors have met the quota standards, the foreign investors will be invited to get in as supporters to the IKN projects.
“Why haven’t foreigners come? Because we prioritize domestic ones first. We sometimes jump too far in our thinking. If local investors have settled, then foreign investors can come,” he said.
