JAKARTA – The Indonesian government conveyed investment opportunities through the National Strategic Project Sewindu (PSN) Exhibition at Kota Kasablanka Mall, Jakarta, with the theme "Investment Opportunities and Infrastructure Financing in the Nusantara", on Wednesday (13/9/2023). Nusantara is planned and implemented carefully, by strengthening the investment sector as the main motor for Nusantara development.
In this session, Deputy for Funding and Investment of the Nusantara Capital Authority (NCA) Agung Wicaksono had the opportunity to convey the strategic opportunities for Nusantara investment together with Deputy for Funding of Development of the Ministry of National Development Planning/Bappenas Scenaider Clasein H. S. and Deputy for Coordination and Infrastructure of the Coordinating Ministry of Martime Affairs and investment Rachmat Kaimuddin, was moderated by Senior Manager Tony Blair Tomi Sooetjipto Institute.
Deputy for Funding and Investment at the NCA, Agung Wicaksono, said that currently there are 12 priority sectors, ranging from renewable energy to housing (housing is the largest sector).
He explained that it was recorded that housing for Aparatur Sipil Negara (ASN) from the Ministry of Public Works and Housing would build 47 towers, which would not be enough if using APBN funds, so it needed to be supported by a Government Cooperation with Business Entity (KPBU) mechanism.
Deputy for Development Funding at the Ministry of National Development Planning/Bappenas Scenaider Clasein H. S. added regarding the Nusantara financing scheme through KPBU. This infrastructure financing is contained in Government Regulation no. 17 of 2022 about Funding and Management of the Preparation, Development and Relocation Budget for NNC, which is classified into 2 things, namely through the APBN (20 percent) and other sources (80 percent), including investment from the private sector. Of course, the common challenge is to complete the massive infrastructure.
He explained that currently the Government has provided a special KPBU scheme for investment in Nusantara, government in collaboration with business entities, for projects initiated by the private sector (unsolicited) that can be completed in the short term (6 months) to calculate prices and others.
"Of course, this will also encourage investors to be interested in investing their capital (in Nusantara) whether directly or by attracting partners from outside," explained Scenaider. According to him,the Government is also preparing many incentives, especially tax incentives.
Agung also touched on the benefits of investing through Government Regulation no. 12 of 2023 regarding the ease of investing in Nusantara. This regulation elaborates on the various existing incentives. For example, Business Use Rights (Hak Guna Usaha) in Nuantara can reach 95 years, or Building Use Rights (Hak Guna Bangunan) for 80 years multiplied by two, but still follow the cycle according to Law no. 5 of 1960 about Basic Regulations on Agrarian Principles.
"This is the project with the most attractive incentive package," said Agung to emphasize the benefits of investing in Nusantara.
To date, the NCA has received 284 Letters of Intent (LoI) from 21 countries. Nearly half the number of LoIs (162 LoIs) came from within the country (Indonesia), followed by ASEAN countries and other countries such as Japan, China, America and others.
According to Agung, several investors will carry out ground breaking at the end of September 2023, including the hotel, hospital, shopping center and sports sectors.
"In the next week, the ground breaking for Nusantara development will begin with private investment, with funds that are not from the APBN," explained Agung.
Deputy for Coordination and Infrastructure at the Coordinating Ministry of Martime Affairs and investment, Rachmat Kaimuddin, said that the central government fully supports and works together in building Nusantara, by coordinating with each other according to the duties and functions of each Ministry and Institution.
The Nusantara development project is certain to be complete and will be completed, despite a change in leadership. This certainty can provide positive winds for investors. "This is the government's consistency as a benchmark. I heard there were people outside who said the possibility that this (the Nusantara development project) would change might not happen, 'no' I said that this will continue because the law already exists," said Scenaider
"By relocating the capital to Kalimantan, Kalimantan and the Eastern Region will receive investment attention in the Eastern Region," he concluded, explaining the urgency of moving the country's capital.
In the series events of Sewindu PSN, the NCAy also had the opportunity to showcase the strategic Nusantara investment sector, through a booth displayed in the Kota Kasablanka Mall Hall, Jakarta.
(Wednesday, September 13th 2023)
Photo Documentation
Source: Nusantara Capital Authority Public Relations
