Funding Constraint Overshadows Indonesia's New Capital

The central government and the National Capital (IKN) Nusantara Authority seek funding to construct the new capital city in Penajam Paser Utara, East Kalimantan. Rumor has it that the National Development Planning Agency (Bappenas) requested the assistance of the Indonesia Investment Authority (INA) to find potential investors.

However, INA refused as seeking investment was not the agency's primary task. INA also does not have sufficient funds under management to be invested in the IKN Nusantara project. In response to this, the Head of the IKN Communications Team, Sidik Pramono, said his agency requested assistance from other government agencies in executing several projects, including INA. The IKN Authority needs the support of all government institutions," Sidik said on Monday.

Meanwhile, a member of the IKN Transition Team, Yon Arsal, said the government would provide incentives to attract IKN investors. "Incentives can be fiscal and non-fiscal," he said.