Gov’t Prepares Incentives for Business Actors, Investors in IKN

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 4 Oktober 2022
Category: News
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President Jokowi before leading a meeting on development of Nusantara capital, Tuesday (10/4) at Merdeka Palace, Jakarta. (Photo: Agung/PR)

Head of the Nusantara Capital Authority Bambang Susantono said that the Government is preparing three things related to the development of the New Capital of Nusantara (IKN).

“There are three things that we have prepared to build the new capital, which is not only livable, but also loveable. We want that in 2024 a comprehensive ecosystem will be established and also make the city a livable city,” said Bambang after attending a meeting chaired by President Joko “Jokowi” Widodo, at the Merdeka Palace, Jakarta, Tuesday (10/4).

Bambang explained that the three things are, among others, the draft government regulation (RPP) related to incentives for business actors and investors who will run their businesses in the IKN, the establishment of a Business Entity Owned by the IKN Authority, and the implementation of market sounding.

“There are several fiscal and non-fiscal incentives that we have designed together with Ministry of Investment as well as the inter-ministerial team from Ministry of Finance, from the National Development Planning Agency (Bappenas), and from other relevant ministries to enable investors to invest and run their businesses as well as possible. It will be beneficial for all parties, including those who live there or the business actors themselves,” said Bambang.

Regarding the establishment of a Business Entity Owned by the IKN Authority, Bambang explained that it was a follow-up to the input of various parties who wished the presence of an institution that specifically run the IKN to create a good and sustainable business climate.

“So the businesses in the IKN will later be handled by the Authority-Owned Enterprises, which will partner, make deals, and take care the IKN together with investors and other business actors. It is expected to create a very good business climate and sustainability. We will pay close attention to the sustainability of the investment in the future,” he said.

Bambang also emphasized that his party will conduct a market sounding as a continuation of the dissemination of investment opportunities that has been carried out by the IKN Authority with the Indonesian Chamber of Commerce and Industry (Kadin). Bambang said that President Jokowi will directly lead this market survey.

“So hopefully in mid-October we will do that by inviting potential investors. We will also hold a dialog in a forum to find out how far we have prepared, what should we build, and what will we do to prepare the city that is green, smart, inclusive, resilient, and sustainable in the future,” Bambang remarked. (TGH/UN) (EST/MMB)

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