However, the construction of IKN does not merely involve moving the capital from Java Island to Kalimantan Island. IKN Nusantara has a bigger goal to achieve the target of a Golden Indonesia 2045.
The Golden Indonesia Vision 2045 is a guide to realizing a sovereign, advanced, and sustainable Indonesia. In 2045, Indonesia aims to become one of the five strongest economic countries, with high income per capita.
Law Number 3 of 2022 concerning the National Capital mandates the government that the relocation of the capital city be carried out as a strategy to realize Indonesia's 2045 economic target, namely more inclusive and equal economic growth through accelerated development in eastern Indonesia.
IKN will play its role as a central function and is a symbol of a country to show the identity of the nation and state. Hence, IKN's development needs to be based on the development of mature city principles as well as the long-term needs and vision of a nation.
So far, the progress in IKN's development consists of two stages. For the first stage, namely physical work, construction contracts had been signed before March 2023, with the progress having reached 60 percent. Meanwhile, for the construction works whose contracts were signed after March 2023, the progress is reaching two to three percent.
In future, IKN Nusantara must also be able to become a livable and lovable city, with the concept of a smart forest city, to achieve the Golden Indonesia 2045 vision.
Related news: IKN construction showing progress every month: Widodo
Economic magnet
IKN development has the first role to become the center and magnet for new Indonesian economic growth to attract global investment interest as well as provide a multiplier effect for the surrounding region in the economy sector.
This is apparent from the investment opportunities offered in IKN development reaching more than 500 projects, such as for green open space, residential areas, health facilities, and educational facilities.
Investors should not miss out on these opportunities. Until mid-December of 2023, the government received 323 letters of intent (LOI) from both national and international investors. In addition, domestic investors have carried out three batches of groundbreakings as a start to the construction of facilities at IKN.
The high interest of private investors, especially national private investors, shows that IKN development truly relies on investment from the private sector, with a value of Rp45 trillion at the end of this year. This is in line with the government’s target to fulfill IKN’s funding with 80 percent of participation from the private sector.
The use of new and renewable energy (NRE) at IKN also attracts private investors. The NRE investment opportunity in IKN could reach around US$6 billion that includes the construction of a solar power plant (PLTS) as well as the installation of a smart electricity transmission and distribution network.
This NRE investment opportunity proves that IKN is determined to achieve net zero emissions by 2045. This can be realized by utilizing NRE as its main source of electricity.
Another investment opportunity offered by IKN's development is the education sector. As a country that has adopted the concept of a smart forest city, IKN must have various educational facilities related to sustainability aspects.
There are 71 investment opportunities for the education sector ranging from elementary schools to high schools. Some private investors have also come forward to build international-standard schools in IKN.
Apart from the basic education aspect, a global university, such as Stanford, also plans to open its campus at IKN and build a sustainable research center that will produce innovations, such as robotic technology, sustainable city development, water management, and other relevant matters related to IKN as a smart forest city.
Related news: IKN development to stimulate equitable economic growth: Minister
Grow together
IKN can also become a role model by collaborating with its surrounding areas to grow together as Indonesia's new economic center.
The development of IKN as a capital city was designed by implementing a three cities strategy wherein IKN does not stand as an independent city but is interdependent and grows together with two other cities -- Samarinda and Balikpapan -- to form a strong economic development triangle complementing one another.
IKN will be the "nerve" in the three cities' strategy as the new government center and green innovation center. Meanwhile, Samarinda will be the heart of the three cities, with its transformation into a new, low-carbon, and sustainable energy sector.
Lastly, Balikpapan becomes the "muscle" for economic development by utilizing its established logistics center and delivery services for import- and export-oriented sectors as well as strengthening the role of the economic superhub in inter- and intra-regional trade flows.
This three cities strategy can help to prevent urban sprawl or uncontrolled city economic growth since the three regions work together to control the growth and development of their urban economies to avoid overlap with administrative boundaries.
The IKN development at this early stage has succeeded in carrying out its role as a magnet for economic growth and collaboration with surrounding areas by the number of investors flocking to invest in the region.
As for the collaborative role, IKN's development was welcomed by the surrounding areas, especially Balikpapan and Samarinda.
With its two roles, in its early development stage, the new capital has brought equal economic welfare to Kalimantan, in line with the goal to make IKN as a step towards realizing Indonesia-centric economic growth and not solely depending on one area.
Nevertheless, the community must support the new capital city development. In addition, other regions are expected to bring more economic value just like IKN to realize a Golden Indonesia in 2045.
Related news: New capital Nusantara to support realization of Golden Indonesia 2045
Editor: Yuni Arisandy Sinaga
Copyright © ANTARA 2023
