Remarks of President of the Republic of Indonesia at the Groundbreaking Ceremony of PT Bank Central Asia’s Office, Nusantara, North Penajam Paser Regency, East Kalimantan Province, August 12, 2024

Bismillahirrahmanirrahim,

Assalamu’alaikum warahmatullahi wabarakatuh.

Good afternoon,

May prosperity be upon us all,

Distinguished Cabinet Ministers,

Commander of the Indonesian National Defense Forces (TNI),

Head and Deputy Head of the Nusantara Capital Authority (OIKN),

Governor of East Kalimantan Province,

Regent of North Penajam Paser Regency,

President Director of PT BCA Mr Jahja Setiaatmadja and all BCA Directors,

Ladies and Gentlemen,

Did you come to Nusantara via Sepaku District or via the toll road? The toll road has not been completed. The toll road will be completed, reaching Nusantara at the end of this year. Is that right, Minister of Public Works? The toll road to Nusantara will be completed by the end of this year. To reach this region we had to go through Sepaku District with a travel time of around two hours. Once this toll road is completed, it will take approximately 40-50 minutes from Balikpapan to Nusantara.

Regarding airport, the Nusantara airport will be utilized by commercial aircraft. If you travel here from Medan, Jakarta, Bandung, Surabaya, Makassar, or Papua, you can go directly to Nusantara through Nusantara Airport. The trip from Nusantara Airport to this area will only take approximately 15 minutes. We will be able to see how close the capital city of Nusantara is to other regions.

Second, related to facilities. When BCA builds an office here, one question arises: who will build the road in front of the BCA’s office? The answer is: the Government. It is impossible for investors to build their own infrastructure, including roads, electricity, and water facilities. All will be developed by the Government. Now, until the end of the year we are still concentrating on development in the core area, namely the Government area. For investors outside the Government area, the infrastructure development will start in January next year.

Regarding the budget, this morning the President-elect Mr Prabowo Subianto has agreed to speed up infrastructure development in Nusantara. Thus, investors do not need to doubt the commitment of the next government.

Third, related to investment, there are 472 investors who have registered and signed the Letter of Intent (LOI) with the OIKN. Having said that, the OIKN has carried out the selection process so we have 220 investors who are serious in making investment in Nusantara. We will continue to carry out the selection process. Currently, if you make an investment in Nusantara, the signing of the cooperation agreement (PKS) will be processed quickly. After the signing, Ministry of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (BPN) will issue the Right to Build (HGB) not later than eleven days. The process is very fast. This is not my testimony, but a statement from Minister of Agrarian Affairs. You may ask him.

Let me extend my appreciation to PT BCA for the investment. When BCA makes an investment in Nusantara, it is safe to say that the investment in this region is highly profitable. BCA is usually very prudent in making calculations. BCA investment is a guarantee. There is no way that BCA would dare to invest here if it does not generate a profit.

Let me also extend my appreciation to Mr Jahja for the investment. We hope Head of the OIKN will take the next step for the 220 investors so they will immediately realize their investment in Nusantara. We are still prioritizing domestic investors, despite many requests from global investors. Once again, we will prioritize domestic investors, and then we will open the opportunity for global investors.

Ladies and gentlemen, have you seen the State Palace and the Garuda Palace in the core government area? Some of you haven’t been there. Before you arrive here, you should visit the palace, or you can also go to the palace from here. You will see that the Government is serious –  very serious –  in developing our new capital.

That concludes my remarks on this auspicious occasion.

By saying bismillahirrahmanirrahim, this afternoon I hereby officiate the Groundbreaking of Bank Central Asia’s office.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(RI/EP)