The IKN Authority targets to realize foreign investment in the new capital (IKN) in East Kalimantan (Kaltim) this year, claiming that foreign investor interest in the region is quite high. The Deputy for Financing and Investment of OIKN stated that the IKN investment plan many foreign investors are considering is a cooperation between the government and business entities (KPBU). Foreign investors are very interested in this PPP, so the government aims for this huge interest from foreign investors to start materializing by 2024. This year, the government's investment target in the new capital reaches IDR 100 trillion, which comes from the public and private sectors. As of the end of 2023, the achieved amount reached IDR 47.5 trillion. The private sector accounted for IDR 35.9 trillion, and the public sector for IDR 11.6 trillion.
The time required for investors to obtain a license actually depends on the chosen industry and investment mechanism, with PPP being the longest option. The time required to join a PPP is 12 months, during which all requirements must be completed. The reason it takes so long is because certain aspects of the feasibility study must be evaluated together with the Ministry of Finance and the auction process. This is a lengthy process because the government plays a role in risk sharing, so investment partners must be carefully selected and determined. However, progress for investors from direct private sector investment will be much faster.
The IKN Authority targets to realize foreign investment in the new capital (IKN) in East Kalimantan (Kaltim) this year, claiming that foreign investor interest in the region is quite high. The Deputy for Financing and Investment of OIKN stated that the IKN investment plan many foreign investors are considering is a cooperation between the government and business entities (KPBU). Foreign investors are very interested in this PPP, so the government aims for this huge interest from foreign investors to start materializing by 2024. This year, the government's investment target in the new capital reaches IDR 100 trillion, which comes from the public and private sectors. As of the end of 2023, the achieved amount reached IDR 47.5 trillion. The private sector accounted for IDR 35.9 trillion, and the public sector for IDR 11.6 trillion.
The time required for investors to obtain a license actually depends on the chosen industry and investment mechanism, with PPP being the longest option. The time required to join a PPP is 12 months, during which all requirements must be completed. The reason it takes so long is because certain aspects of the feasibility study must be evaluated together with the Ministry of Finance and the auction process. This is a lengthy process because the government plays a role in risk sharing, so investment partners must be carefully selected and determined. However, progress for investors from direct private sector investment will be much faster.
