Investors in the port service sector have also begun to come to North Penajam Paser to support the construction of the new national capital and contribute to the material supply lineN Penajam Paser, E Kalimantan (ANTARA) - Investment in North Penajam Paser district, East Kalimantan, has risen significantly following the central government's decision to designate the district as the site for the future national capital, a district official has said.
"Investors began flocking to Sepaku sub-district, North Penajam Paser, after the region was designated as the future national capital in 2019," North Penajam Paser's Investment and Integrated One-Stop Service Office head, Alimuddin, informed in Penajam on Monday.
The designation of Sepaku as the future national capital location has stoked investor interest in the district and has led to a rise in the committed investment value, he said.
The total investment value committed in the agriculture, coal, port service, and real estate sectors in the sub-district has reached Rp300 million (around US$21 million), he informed.
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"Investors in the port service sector have also begun to come to North Penajam Paser to support the construction of the new national capital and contribute to the material supply line," he noted.
Besides increasing investment realization, the designation of the region as the new national capital is also expected to boot revenue from taxes, permits, retributions, and the revenue sharing fund, the official informed.
Despite the increase in investment in the region, the number remains tentative as the regional government is only monitoring investment activities after the central government grants investment permits, Alimuddin said.
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Moreover, of the total Rp360 billion (around US$25.2 million) investment realization target in 2021, the realized investment in the district has been recorded at just Rp225 billion (around US$15.7 million), he added.
"We are yet to reach the investment realization target because committed companies are affected by the COVID-19 pandemic, as some companies have delayed their entry while others are suspending their operation," Alimuddin informed.
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Translator: Novi Abdi/Bagus P, Nabil Ihsan
Editor: Fardah Assegaf
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