New Capital City Development 'Will Happen,' Asserts Investment Minister

Indonesian Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, firmly stated on July 21, 2022, that the development of the new capital city, Nusantara (IKN), is a 'done deal' and will proceed, countering criticisms against the project. President Joko Widodo has strongly pushed for the relocation of the capital function outside of Java, citing issues such as Jakarta's overcrowding, traffic congestion, and flood risks. While Jakarta holds significant historical importance and economic influence for Indonesia, these problems have raised questions about its suitability as the capital. The President designated Penajam Paser Utara in East Kalimantan as the site for the new capital, named 'IKN.' The plan aims not only for physical construction but also for fostering social cohesion and a dynamic, vibrant community, envisioning an inclusive, green, smart, and sustainable city for all. However, the IKN development plan has faced considerable criticism, stemming from its substantial funding requirements, accusations of being a presidential imposition, and predictions of a lack of investor interest. The perceived failure to attract foreign investment has been a particular point of contention. In response to these criticisms, Minister Bahlil asserted that investments for IKN are already secured. He indicated that numerous countries, including the United Arab Emirates (UAE), South Korea, Taiwan, and China, have expressed interest in investing. He urged the public to believe in and support the development of IKN, stating that while it's "nonsense" to name specific countries daily, investments are indeed coming. Source: VOI English