Nusantara to see big boost in foreign investment, says Jokowi
JAKARTA: President Joko “Jokowi” Widodo has claimed that the new capital in Nusantara will see a big boost in foreign investment in the coming months, as the outgoing leader scrambles to appease concerns about the project, following the surprise departure of two top administrators from the Nusantara Capital City (IKN) Authority.

Jokowi, who will step down from office in October, has been under pressure in recent days to address concerns surrounding the fate of his Rp 541 trillion (US$33 billion) new capital city project, for which he has expended massive political resources to get up and running.

Several national companies have eagerly accepted the President’s repeated sales pitches over the past few months, but the project has failed to garner similar commitments from foreign investors.

On Tuesday (June 4), Jokowi visited Nusantara in East Kalimantan to oversee the groundbreaking of construction projects from automotive group Astra and privately owned Gunadarma University.

The President also inaugurated the Sepaku Semoi Dam, slated to be one of the new city’s clean water sources.

During the groundbreaking ceremonies, Jokowi talked about his meeting with leaders of United Arab Emirates-based multinational real estate developer Emaar Properties, in which the business people complimented the beauty of the under-construction city. “I told him that I wasn’t interested in his compliments; what I want is his investment,” Jokowi said.

“He immediately made a commitment [to invest]. I will refrain from mentioning the number, but it’s really big,” he continued, adding that the commitment would be signed in either Abu Dhabi or Dubai in July.

The President then urged prospective investors in the audience to follow suit by immediately buying plots of land in Nusantara before their price goes up, particularly once the transportation networks in and around the new capital are up and running.

“The price of land now is between Rp 400,000 and Rp 800,000 [per square meter]. But this can change as soon as tomorrow, depending on the IKN Authority head,” Jokowi said.

“If there’s big demand, the price will go up for sure.” Jokowi’s visit on Tuesday came after the resignation of Bambang Susantono and Dhony Rahajoe from their posts as head and deputy head of the capital city authority body, announced on Monday, around two months before Nusantara’s inauguration on this year’s Independence Day commemoration in August.

In their stead, Jokowi has tapped Public Works and Housing Minister Basuki Hadimuljono and Deputy Agrarian and Spatial Planning Minister Raja Juli Antoni as the authority’s interim head and deputy head, respectively.

In a statement on Monday evening, Dhony said he would continue supporting the Nusantara project despite no longer being part of the IKN Authority.

He, however, fell short of providing a reason for his resignation. Bambang has yet to make any public statement surrounding his resignation.

But State Secretary Pratikno said that Jokowi gave Bambang another direct assignment to bolster international cooperation to expedite Nusantara’s development.

Speculation had emerged that the resignations could be related to their paycheck either being docked or late.

But a Finance Ministry official dismissed the rumour on Tuesday.

House of Representatives Speaker Puan Maharani of the Indonesian Democratic Party of Struggle (PDI-P) urged the government to be transparent about the reasons behind Bambang and Dhony’s resignations, for fear that keeping it unannounced might hinder future investment.

Experts have previously raised concerns that the dual departure of the IKN Authority's top officials would put a question mark over whether the project would continue, sending out more bad signals for business certainty.

Such a situation would make potential foreign and domestic investors hesitant about chipping in for the project.

She also urged Jokowi to consult with president-elect and incumbent Defence Minister Prabowo Subianto, to determine Bambang and Dhony’s successors.

“It would be best for the current administration to talk with the incoming one [to decide on] who will be chosen as the definitive chairman of the IKN Authority,” Puan said on Tuesday, as quoted by kompas.com.

Running with Jokowi’s eldest son Gibran Rakabuming Raka and with the President’s tacit support, Prabowo promised on the campaign trail to continue many of his predecessor’s policies, including Nusantara’s development.

One name often linked with filling the IKN Authority’s top post is Golkar Party politician Ridwan Kamil.

The former West Java governor had a meeting recently with Prabowo to discuss the development of the planned capital city, according to Deputy House Speaker and Gerindra Party executive Sufmi Dasco Ahmad.

“[They] talked about the future of Nusantara, especially from the city-planning perspective, the ideas from which will be used by Pak Prabowo in the future development of the city,” Dasco said on Tuesday, as quoted by tempo.co.

Ridwan is an architect by training and has received several awards for his work.

He was seen on several occasions as part of Jokowi’s entourage during visits to Nusantara. - The Jakarta Post/ANN
Indonesia,Nusantara,foreign investment,boost,Jokowi
JAKARTA: President Joko “Jokowi” Widodo has claimed that the new capital in Nusantara will see a big boost in foreign investment in the coming months, as the outgoing leader scrambles to appease concerns about the project, following the surprise departure of two top administrators from the Nusantara Capital City (IKN) Authority.