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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Kadin Indonesia Bersama OIKN, Kementerian Keuangan, dan Kementerian Investasi Dorong Partisipasi Swasta di Pembangunan IKN

Kadin Indonesia Together with OIKN, Ministry of Finance, and Ministry of Investment Encourage Private Participation in IKN Development

After successfully held in the cities of Balikpapan and Bali, the Indonesian Chamber of Commerce and Industry (Kadin) together with the Ministry of Finance and the Nusantara Capital Authority (OIKN) today held another Roadshow 'Public Consultation on Investment Opportunities, Investment Incentives, and Ease of Doing Business in IKN', in Jakarta. Through Public Consultation activities and discussion sessions between various stakeholders, this activity seeks to encourage investment and private sector participation in the development of the Capital City of the Archipelago (IKN).

Head of Kadin Indonesia's Integrated Property Area Development Agency, Budiarsa Sastrawinata, affirmed Kadin Indonesia's commitment in encouraging the development of IKN as one of the organisation's priority programmes to support the achievement of a resilient, prosperous, inclusive and sustainable Golden Indonesia Vision 2045.

"IKN aspires to be an accelerator of inclusive and sustainable national economic growth. The implementation of this Roadshow is important to encourage the business world about investment opportunities and facilities in IKN as well as to get feedback from business people to optimise investment regulations and ease of doing business in IKN," said Budiarsa (1/12/2023).

One of the main activities in this roadshow is a public consultation session. The session brought together business players with stakeholders including the IKN Authority and the Ministry of Finance as regulators to encourage the creation of a healthy investment ecosystem in IKN.

In addition, there are a number of sessions that discuss important topics for the private sector, including Investment Opportunities and Schemes in the Archipelago Capital, Customs Facilities for Importing Goods in IKN and Partner Regions, Ease of Tax Incentives regarding VAT and STLG Clusters in IKN Development Areas, and Tax Holiday Facilities in investing in IKN.

The sustainability of IKN development has been guaranteed by the government and it can be explained that the incentives in IKN are the most attractive in Indonesia, with legal certainty. OIKN is diligently implementing the IKN Law, which provides protection to the public who want to contribute and the private sector who invest in the development of the Capital City of the Archipelago.

"This is evidenced that to date, there has been 35 trillion rupiah of private investment commitments realised in development in the IKN, equivalent to the amount of the state budget allocated for IKN development. So, this IKN has been built not only with state money, but also public money through private investment of equal value," said Deputy for Funding and Investment of the Nusantara Capital City Authority, Agung Wicaksono.

Representing the Deputy Minister of Finance, Expert Staff for Tax Compliance of the Ministry of Finance, Yon Arsal, said that the government always opens the door to the greatest possible collaboration with the private sector in the successful development of IKN. "The Ministry of Finance is committed to supporting funding for the development of the Government Centre Core Area (KIPP) in IKN, which covers an area of 6,600 hectares through the state budget. Meanwhile, larger areas will be built using creative financing schemes, such as blended finance," said Yon Arsal.

Similarly, the Director of Deregulation of the Ministry of Investment / BKPM, Dendy Apriandi, revealed that the development of IKN requires support from business people, especially in the context of development funding. Therefore, investment from business people is an important part of the IKN development scheme.

"Support from the business world coordinated by Kadin Indonesia is needed for IKN to keep running and achieve the vision of a sustainable city. IKN is expected to be a beacon of Indonesia to the international world, that this nation is an advanced nation and prioritises the values of inclusiveness, sustainability and technology-based in every development," said Dendy.

According to data from the Presidential Secretariat, there are already private investors present in the development of IKN. The investment is a combined investment from a consortium of ten large companies, including Agung Sedayu Group, Salim Group, Sinarmas, Pulauintan, Adaro Group, Barito Pacific, Mulia Group, Astra Group, Kawan Lama Group, and Alfamart group.

In terms of infrastructure, based on data from the Ministry of Public Works and Public Housing, the progress of IKN Phase 1 basic infrastructure construction has reached 38.1% as of August 2023 and all activities are still running according to the implementation schedule. Some of the basic infrastructure includes the IKN Phase 1 Access Toll Road, State Palace, Presidential Office, and Sepaku Semoi Dam. In addition, for phase 2, it includes projects whose contracts began in April to May 2023, such as the Coordinating Ministry Building and the IKN ASN (State Civil Apparatus) Flats have also begun work.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry