Refuting Mahfud, Bahlil: Foreign investment into IKN reached IDR 50 trillion
English
JAKARTA -- Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia rejected vice presidential candidate Mahfud MD's statement in the second 2024 presidential election debate which said that the Nusantara Capital City (IKN) had minimal investment from both local and foreign investors.
Minister Bahlil emphasized that Mahfud's statement was wrong because in reality many companies had invested in IKN, including companies from abroad whose investment value reached IDR 50 trillion.
"Investment from outside Indonesia has come in around IDR 50 trillion," said Bahlil while attending a symposium with representatives of the Student Executive Board (BEM) throughout Java Island in Jakarta, Saturday (23/12/2023).
According to Bahlil, foreign investment generally comes from companies in Asia and Europe operating in the service sector, such as hotels, malls, educational facilities and hospitals.
Foreign investment will only enter the second cluster after all supporting infrastructure has been completed. "So, the first cluster of our policy is to prioritize domestic investment, they (foreign investment) are included in the second cluster," said Bahlil.
Apart from investment from foreign countries, he said that IKN was also sought after by domestic investors. It is recorded that several large companies such as Mayapada and the Agung Sedayu Group have invested in the capital city of the archipelago.
Bahlil explained that the financing scheme for IKN development comes from the APBN with a total investment value of IDR 400 trillion-IDR 560 trillion, depending on how much inflation increases.
"Well, of that total, 20 percent is financed by the APBN, and this is not done for 1 year or 2 years, but for the remaining 15 to 20 years it is investment," he said.
Nulis, Makan, Minum, Sport
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