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TEMPO.CO, Jakarta - The Head of Nusantara Capital City (IKN) Authority, Basuki Hadimuljono, has stated that the development of IKN has served as evidence that the national economic growth continues to be sustained through a combination of state financing, government and business entity cooperation (KPBU), and pure private investment.President Prabowo previously approved a budget of approximately Rp48.8 trillion for the continuation of IKN development from 2025 to 2029. As such, the development of IKN relies not only on the state budget but also on investments from various domestic and international parties.The IKN Authority has received investment commitments worth Rp225.02 trillion, consisting of Rp66.3 trillion in pure private investment and Rp158.72 trillion through cooperation between the government and business entities (KPBU) for the construction of roads and underground tunnels designed to accommodate city utilities (multi-utility tunnels), as well as for the development of residential areas in the IKN region.The trust from investors, Basuki mentioned, indicates the sustained national economic stability and strengthens the foundation of IKN development with the full support of the head of state. "The development of IKN continues to progress, with the synergy between the government, business players, and the community as the main capital in realizing IKN as an accountable and sustainable governmental center," he stated in Sepaku, Penajam Paser Utara, East Kalimantan, on Wednesday, November 5, 2025, as cited from Antara.Most recently, Japan has expressed interest in investing in the green and sustainable development of IKN in parts of the Penajam Paser Utara and Kutai Kartanegara Regencies in East Kalimantan.The Japan External Trade Organization (JETRO) Saga office is currently exploring various opportunities for cooperation and investment in Indonesia, particularly in the development of infrastructure and industrial areas in IKN. Basuki expressed hope that JETRO's interest would mark the initial step in concrete cooperation between Indonesia and Japan in realizing the green, modern, and sustainable development of IKN."JETRO has envisioned the direction of IKN development," said CEO & Chairman of JETRO Kanzaki Industry Corp, Tsuru Katsuya, last Monday.According to him, Japan's perspective, which faces challenges with metropolitan density, has made the development of IKN very appealing. Japanese investors are attracted to the long-term nature of IKN development.JETRO inspected economic infrastructure, such as industrial areas and transportation facilities, as well as other potential sites, in preparation for exploring future investment opportunities in Indonesia, particularly in IKN.Furthermore, Basuki explained that every stage of IKN's achievements always aligns with national development. The development of IKN also serves as evidence that the national economic growth is sustained through a combination of state financing, government and business entity cooperation (KPBU), and pure private investment. "Various achievements of IKN are aligned with national development," Basuki stated.National development, which has been the central focus of the central government, according to Basuki, spans from economic stability, social welfare, education and human resource development, food security, and public health.During the occasion, Basuki also outlined several regulations that support the development of IKN, such as Presidential Regulation (Perpres) Number 12 of 2025 concerning the National Medium-Term Development Plan (RPJMN) for the 2025-2029 period. This policy asserts the continuation and acceleration of IKN development as a symbol of progress and equitable development in Indonesia.Additionally, Presidential Regulation Number 79 of 2025 concerning the Update of the Government's Work Plan for 2025. This policy governs the direction of national development, including the acceleration of IKN development."The regulations target IKN as Indonesia's Political Capital City by 2028, with the support of the relocation of civil servants and the provision of adequate infrastructure," Basuki stated.Editor's Choice: Indonesia to Build Legislative and Judicial Complexes in New Capital IKNClick here to get the latest news updates from Tempo on Google News
