Nusantara Capital Authority Offers Incentives for Central Java Partnership

The Nusantara Capital Authority (IKN) is prepared to offer fiscal incentives to the Central Java Provincial Government should it become a partner in the development of Indonesia's new capital city. This was conveyed by the Head of the IKN Authority, Basuki Hadimuljono, during a meeting with the Governor of Central Java, Ahmad Luthfi, and regents and deputy regents from across the province at the IKN Authority office on Thursday, August 6. The discussions focused on potential collaboration and investment opportunities for Central Java within IKN. "We always serve investors who enter. If Central Java becomes a partner of the IKN Authority, there will be fiscal incentives," stated Basuki, as quoted from a written statement on Friday, August 7. He emphasized that the IKN Authority is continuously opening avenues for collaboration with various regions across Indonesia, viewing inter-regional synergy as a crucial factor in strengthening the IKN development ecosystem as an inclusive and sustainable political capital. The scope of cooperation with Central Java is not limited to investment but can extend to various strategic sectors supporting IKN's development, including the provision of goods and services, human resource development, and the creative economy and tourism sectors. During the meeting, the IKN Authority also provided an overview of IKN's development and its funding schemes. The construction is currently supported by the State Budget, Government Cooperation with Business Entities (KPBU), private investment, and grants. To date, private investment in IKN has reached an estimated Rp74.54 trillion from 67 investors, while projects under the KPBU scheme are valued at IDR 134.22 trillion. Governor Ahmad Luthfi welcomed the prospect of collaboration, noting that Central Java's development has always been pursued through a collaborative approach involving all stakeholders, including the media, the business world, and various societal elements. This visit by the Central Java officials marks a significant first step in exploring cooperation between the provincial government and the IKN Authority. Both parties expressed hope for strengthened synergy in promoting investment, expanding inter-regional cooperation opportunities, and creating mutually beneficial economic outcomes for the development of IKN and the region. Information Source: VOI English