STRATEGIC ASSESSMENT. President Jokowi has claimed that the new capital in Nusantara will see a big boost in foreign investment in the coming months, as the outgoing leader scrambles to appease concerns about the project, following the surprise departure of two top administrators from the Nusantara Capital City (IKN) Authority.
Jokowi visited Nusantara in East Kalimantan to oversee the groundbreaking of construction projects from automotive group Astra and privately owned Gunadarma University, and to inaugurate the Sepaku Semoi Dam, slated to be one of the new city’s clean water sources.
The resignations intensify existing doubts about Nusantara, which has been plagued with delays and insufficient investment. Analysts suggest the project, seen as “politically driven” with questionable economic viability, might have been rushed to secure Jokowi’s legacy before his term ends.
President Jokowi was announced that Emaar Properties, a United Arab Emirates-based company, would make a significant investment in the future capital next month. According to Jokowi, the prospective investor stated that IKN was the best place to invest. President Jokowi said that investing in IKN is like owning the future. He then urged investors to invest in IKN before land prices shoot up.
Vice President Ma’ruf Amin said the definitive chair and deputy chair of the Nusantara Capital City Authority (OIKN) may be selected by the next president, Prabowo Subianto.
Ma’ruf said that until now, no talks had been held with President Jokowi regarding the appointment of the definitive head and deputy head of OIKN.
Maritime Affairs and Investment Coordinating Minister Luhut Binsar said the resignation of the IKN Authority (OIKN) Chair Bambang Susantono and Deputy Dhony Rahajoe was due to incapability of completing their tasks properly, especially the land issue in IKN, East Kalimantan.
President Jokowi said that he plans to start working from the new capital city in July amid concerns over the future of the project following resignations of senior executives overseeing the development.
Jokowi said progress in a number of infrastructure developments under the first phase of the $32 billion capital city has reached around 80 percent and preparations to celebrate Indonesia’s 79th Independence Day in the new capital in August are well under way.
President Jokowi said that resignations of Nusantara Capital Authority (OIKN) Chair Bambang Susantono and Deputy Chair Dhony Rahajoe were tendered for personal reasons. The president also emphasized that the resignations have no impact on either investment or investor confidence in the development of the new capital.
President Jokowi was inaugurated the groundbreaking of the Nusantara Sustainability Hub in IKN, East Kalimantan, marking the start of construction of an international standard sustainable energy innovation and research center in Indonesia’s new capital.
On an area of 2.5 hectares, a research institute, the International Institute of Sustainability Indonesia (IISI) will be established, initiated by the Bakrie business group and supported by the Stanford Doerr School of Sustainability, Stanford University, United States.
President Jokowi said that fuel-based vehicles will not be allowed to enter Nusantara Capital City (IKN). “Only EVs (electric vehicles) are permitted (to be used in IKN),” Jokowi said.
Investment Minister Bahlil Lahadalia ensured that the influx and appeal of investments at the new capital city (IKN) Nusantara were not in a weakened state despite the Nusantara Capital Authority (OIKN) head’s resignation.
Lahadalia dismissed rumors about the resignations of the OIKN head and deputy head adversely affecting the investment value at IKN by noting that infrastructure construction in the city had been going on track.
“I have just returned from a visit to Nusantara to accompany Mr. President (Joko Widodo) to the groundbreakings of several investment-funded projects, including the PLN Hub and a Stanford University-backed R&D hub,” he remarked in Jakarta.
Trade Minister Zulkifli Hasan said that if the Nusantara Capital City (IKN) in East Kalimantan is completed, it will be similar to Washington, D.C. in the United States. “The facilities are still natural, fresh, but not all finished yet. But once finished, it will be something like Washington, D.C.,” said the Trade Minister.
