Penajam (ANTARA) - The construction of the new state capital city Nusantara in North Penajam Paser District in East Kalimantan Province is bringing more investment to the district, according to a local official.

Along with the massive development of IKN Nusantara, more investors will enter the region, said Alimuddin, Head of the Investment, Licensing and One-Stop Integrated Service of North Penajam Paser, here on Tuesday.

The provincial government of East Kalimantan was targeting to attract investment of Rp800 billion to North Penajam Paser in 2022.

However, investment of around Rp1.39 trillion flowed into the district by the end of 2022 or exceeded the target, due to an increase in investment in property, services, retail, and mining, according to Alimuddin.

The target was achieved after the Sepaku Sub-district in North Penajam Paser was designated as an IKN core area.

Alimuddin said that if all the businesses in the sub-district routinely report their investment, he said, then the real investment values would be higher.

"Many have not reported investment, especially in IKN, possibly because it is related to the authority of the central government," he said.

According to him, the relocation and development of the IKN Nusantara to Sepaku have led to investors looking to North Penajam Paser to park their investments.

This year, the provincial government is targeting to attract around Rp2.6 trillion in investment to the district.

"We are optimistic that the investment target set by the provincial government can be achieved because we see opportunities with the existence of IKN," said Alimuddin.

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Translator: Novi Abdi/Bagus Purwa, Cindy Frishanti Octavia
Editor: Anton Santoso
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