President Joko Widodo will include foreign investment in the development of the Central Government Core Area or KIPP IKN Nusantara. Foreign investment will enter areas 1B and 1C in KIPP IKN Nusantara. This step was taken because not all regional development relies on the state budget. For information, the construction cost of the IKN reaches Rp. 466 trillion with a contribution of around Rp. 93.2 trillion or 20% to the state budget. Meanwhile, the state budget will finance the construction of KIPP IKN Nusantara until 2024 worth IDR 43 trillion. "The consideration for foreign investment in KIPP is to accelerate investment and I don't think there has ever been a statement that 100% of the KIPP IKN construction budget must come from the state budget," said Head of the National Capital Authority Agency Bambang Susantono at the Merdeka Palace, Monday (28/11). In February 2022, Jokowi said that the entire development of KIPP IKN Nusantara would use the state revenue and expenditure budget or APBN. The area referred to by the Head of State is the area of the State Palace and ministry buildings.
However, Bambang noted that currently there has been a demand for investment in the area of the State Palace and ministry buildings. Bambang calculated that the current total investment demand is 39 times greater than the area offered to foreign investors. That's why the President made the decision to open foreign investment into KIPP IKN. The 1B and 1C areas will function as commercial areas in KIPP IKN. As is known, the construction plan for the National Archipelago Institute has been regulated in Presidential Regulation No. 62-2022 concerning Details of the Archipelago Capital City Master Plan. In this regulation, the central government area, national-scale activities, and residences in KIPP IKN Nusantara are in area 1A with an area of 2,876 hectares. The area has a development area of around 921 hectares. Meanwhile, area 1B functions as a center for education, training, human resource development, and housing. Area 1B has an area of 2,037 hectares with potential for area development of up to 488 hectares. Area 1C functions as a health center and residential area with an area of 1.78 hectares. Meanwhile, the potential for developing the 1C area is 351 hectares. The Ministry of Public Works and Public Housing or PUPR has added a budget of IDR 15 trillion to build two production roads in the two areas in the first quarter of 2023 to attract investors.
