President Jokowi Calls 21 Investors Immediately Build IKN

President Joko Widodo promotes investment in Indonesia to Chinese entrepreneurs. One of them is investing in IKN.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found in Presiden Jokowi Sebut 21 Investor Segera Bangun IKN

BPMI SEKRETARIAT PRESIDEN-LAILY RACHEV

President Joko Widodo witnessed several collaborations signed between Indonesian state-owned enterprises and private sectors with Chinese entrepreneurs at the Indonesia-China Business Forum held at China World Hotel, Beijing, China, on Monday (16/10/2023).

JAKARTA, KOMPAS - President Joko Widodo mentioned that 21 investors will soon commence development in the new capital of Indonesia. This private sector development follows the halfway completion of the basic infrastructure and government center development.

The development of IKN with the concept of a green city in a jungle was conveyed by President Jokowi as one of the investment potentials in Indonesia at the Indonesia-People's Republic of China Business Forum (PRC) which was held at the China World Hotel, Beijing, China, Monday (16/10/2023).

Also present in this meeting were, among others, Foreign Minister Retno LP Marsudi, Trade Minister Zulkifli Hasan, State-Owned Enterprises Minister and Interim Coordinating Minister for Maritime Affairs and Investment Erick Thohir, Minister of Villages, Disadvantaged Regions, and Transmigration Abdul Halim Iskandar, Investment Minister/Head of BKPM Bahlil Lahadalia, and Cabinet Secretary Pramono Anung.

As a green city amidst the jungle, IKN will become the first carbon neutral city in Indonesia. 60 percent of IKN is comprised of forests.

BPMI SEKRETARIAT PRESIDEN-MUCHLIS JR

President Joko Widodo considers China's investment in Indonesia to be fast and appropriate. He conveyed this during the Indonesia-People's Republic of China Business Forum held at China World Hotel, Beijing, China, on Monday (16/10/2023).

President Jokowi estimates that the construction of basic infrastructure and government centers will be completed next year. As of early November 2023, there are already 21 investors from within and outside the country who have and will soon carry out groundbreaking with a total investment value of 2 billion US dollars.

Another potential is the downstreaming of industries on various commodities such as nickel, copper, tin, and other minerals. Indonesia is also currently focusing on building an integrated electric vehicle ecosystem to become a vital part of the global supply chain.

"This requires high-level technology transfer and investment, especially if combined with the use of abundant green energy sources in Indonesia to produce green products, in order to create a green economic ecosystem," said President Jokowi.

The potential for renewable energy in Indonesia is enormous, reaching up to 3,600 gigawatts. This potential is derived from solar, wind, and water energy, which are abundant in Indonesia. For hydroelectric power plants, for instance, Indonesia has 4,400 rivers.

KOMPAS/IWAN SETIYAWAN

Technicians monitor the temperature absorption above the surface of solar panels at the Cirata Solar Power Plant (PLTS) managed by PT Pembangkitan Jawa Bali located in the Cirata Reservoir area, Purwakarta Regency, West Java, on Thursday (23/9/2021).

President Jokowi also appreciated the investment and contribution of Chinese entrepreneurs in development in Indonesia. "I would like to express my thanks for the investment, for its contribution to Indonesia's development. "In 2013, the PRC (People's Republic of China) was in 12th place as a contributor to foreign direct investment (FDI) in Indonesia, number 12 in 2013, but in 2022 it will be in second place," he said.

The President also made an analogy with the way Chinese entrepreneurs invest in Indonesia, such as Bruce Lee, with his Wing Chun movements, namely fast and precise.

The President also believes that China's investment in Indonesia will continue to increase and become the top contributor to FDI in the next one to two years. "If they remain consistent like this, I'm confident that within one to two years, China could become the top contributor to FDI in Indonesia and that's what I've been waiting for," he said.

President Jokowi assures investors that investing in Indonesia is a wise choice due to its ease and safety. Several economic indicators in Indonesia show positive achievements, including consistent economic growth above 5 percent, 41 consecutive months of trade balance surplus, 25 consecutive months of PMI in expansion level, and a demographic bonus.

BPMI SEKRETARIAT PRESIDEN-MUCHLIS JR

dibawah Singapura. Namun, Presiden Jokowi berharap agar investasi Cina dapat meningkat lagi di masa depan. President Joko Widodo interacted with Chinese business players at the Indonesia-China Business Forum (ICBF) held at China World Hotel in Beijing, China on Monday (October 16th, 2023). Currently, China's Foreign Direct Investment (FDI) in Indonesia is in second position with a value of 8.6 billion US dollars, trailing behind Singapore. However, President Jokowi hopes that Chinese investment can increase even further in the future.

"We have also prepared incentives and of course social and political stability is always maintained. So, don't let anyone worry about the upcoming 2024 elections because Indonesia also has experience in holding direct general elections five times. "So, you don't need to worry, you just need to hurry," said the President.

Investment opportunities in Indonesia, according to the President, not only benefit Indonesia but also China.

Erick Thohir added that the growth of Chinese investment in Indonesia is very positive. If in 2013 Chinese investment was only 280 million US dollars, now it has reached 8.6 billion US dollars.

Investment from China is also considered important. This is because technology from this country is highly advanced and necessary to drive downstreaming in Indonesia and the development of green economy. Moreover, according to Erick, Indonesia wants to become an industrialized country and be a part of the global supply chain.

KOMPAS/RADITYA HELABUMI

BUMN Minister Erick Thohir

In the Indonesia-China Business Forum, a cooperation agreement was also signed between China's private sector and Indonesian companies as well as state-owned enterprises (SOEs) worth $13.7 billion USD.

”This is what has been agreement. "The potential (other investment) is still 29 billion US dollars," said Erick.

From the 31 collaborations signed, nine of them were carried out by Indonesian state-owned enterprises. The collaborations include Indonesia Battery Corporation (IBC) working together with CATL for the development of electric battery industry and PT PLN (Persero) cooperating with a Chinese electricity company.