BALIKPAPAN - The Nusantara Capital Authority (NCA) will once again hold the groundbreaking ceremony for the physical development phase 4 on January 17th, 2024. Phase 4 groundbreaking will mark the beginning of the construction process for the City Hall and NCA Office, Memorial Park, the Deposit Insurance Agency (LPS) office, the LPP RRI office, a hotel, warehouse, and the National Mosque.

According to the Chairman of the NCA, Bambang Susantono, this demonstrates NCA's commitment to ensuring that the Nusantara development continues as planned. "The progress of physical development is becoming more visible; we are confident and optimistic that the development targets will be achieved, and investors will also increase," said Bambang on Tuesday (16/1/2024) in Balikpapan.

Bambang explained that the development of Nusantara is an effort to achieve the Golden Indonesia 2045 Vision, requiring support from all parties not only as a project but as a transformation effort.

According to Bambang, Nusantara is part of the Indonesia 2045 vision that aims to move from a middle-income country to a high-income country. “We need a new economic center. In Java, it's already as it is now. This is one of the transformation programs and must be supported by all elements,” he said.

Deputy for Funding and Investment of the NCA, Agung Wicaksono, stated that in line with the promise and commitment of the NCA, exactly 7 months before the Indonesian Independence Day ceremony in August 2024, the NCA is conducting the groundbreaking for phase 4. "We are increasingly determined to realize IKN," said Agung during a media briefing on Tuesday (16/1/2024) in Balikpapan.

Agung explained that there are two state-owned enterprises (BUMN) involved in phase 4 groundbreaking, namely Pos Indonesia and RRI. Pos Indonesia will build the Nusantara Logistics Hub, while RRI will build a studio and broadcast in Nusantara. "We can see the increasingly real role of BUMN," said Agung.

In the phase 4 groundbreaking, the construction of the national mosque by the Ministry of Public Works and Public Housing (PUPR) will also begin. This national mosque will be able to accommodate 60,000 worshipers.

Agung added that there is an additional interest in investment from the Bandar Seri Begawan investor consortium led by the younger sibling of the Sultan of Brunei, Her Royal Highness Pengiran Anak Puteri Hajah Amal Rakiah. The consortium consists of a combination of international companies, especially from Saudi Arabia. "They are interested in investing in the housing sector, landed houses, and apartments, with an investment value ranging from 4.6 to 7 trillion Rupiah," said Agung.

Previously, 23 pioneer investors from within the country conducted groundbreaking ceremonies in Nusantara with non-state budget investments valued at around Rp41.4 trillion. Phase 1 groundbreaking (September 21-22, 2023) with an investment value of Rp23.1 trillion. In phase 1, several investors started their constructions, including malls, hotels, offices, and green open spaces led by investors in the Nusantara Consortium. Phase 2, held on November 1-2, 2023, with a value of Rp13.1 trillion.

Phase 2 groundbreaking was carried out by the Ministry of Transportation of the Republic of Indonesia, Mayapada Hospital, Pakuwon Group, JIS, Hermina, Bank Indonesia, BPJS Ketenagakerjaan, and PLN Indonesia. During this phase, the revitalization of SDN 020 Sepaku was also inaugurated, with its land dedicated by the local residents.

As for phase 3, conducted on December 20-21, 2023, it marked the construction of the Central Nusantara General Hospital (RSUP IKN) and the development of Nusantara Superblock. The investment in Nusantara Superblock reached Rp3 trillion.

The government has provided various incentives and compensation to corporations interested in investing in IKN, regulated in Government Regulation No. 12 of 2023 concerning Business Licensing, Ease of Doing Business, and Investment Facilities for Business Actors in the Capital City of Nusantara.

These incentives and compensations include: Corporate income tax (PPh) at 0% for 10 years, Value-added tax (PPN) for imports at 0%, Luxury goods sales tax (PPnBM) at 0%, Import duty at 0%, Land and building tax (PBB) at 0% for 10 years.

The development of Nusantara not only promises economic progress but also contributes to environmental preservation. The concept of an environmentally friendly smart city, known as a forest city, is a priority, indicating a commitment to a sustainable future for future generations.

The Spokesperson for the IKN Authority, Troy Pantouw, added that the phase 4 groundbreaking is a manifestation of the Indonesian Government's commitment to realizing IKN as a modern, intelligent, and sustainable capital. "IKN will be an inclusive and environmentally friendly city. This city will be a symbol of a new civilization and the progress of the Indonesian nation," concluded Troy Pantouw.
 

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Source: Nusantara Capital Authority Public Relations