IKN progress to reach 15% by Aug 17: President

Jakarta (ANTARA) - The construction of the Nusantara capital city (IKN), East Kalimantan, will be just around 15 percent complete when the country commemorates its 79th Independence Day on August 17 this year, President Joko Widodo (Jokowi) estimated.

"Do not imagine that it will be completely done on August 17. At the very least, it will only reach 15 percent by August 17," he said at Halim Perdanakusuma Air Force Base in Jakarta on Tuesday before leaving for a state visit to the United Arab Emirates (UAE).

He reiterated that the IKN is a long-term dream, whose construction will not be complete in just two or three years.

"It still requires investment; it still needs investors from within and outside (the country). We are pushing this," he said.

To accelerate investment in IKN, Widodo signed Presidential Regulation (Perpres) Number 75 of 2024 concerning the Acceleration of the Nusantara Capital City Development.

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The regulation stipulates the provision of incentives to prospective investors participating in building infrastructure and service facilities at IKN.

The incentives include a guarantee of land rights as well as the right to cultivate (HGU), which will be valid for 190 years (in two cycles of 95 years each).

According to him, the HGU of up to 190 years is aimed at attracting as much investment as possible, both from within and outside the country.

Another incentive is the right to build (HGB) for a total period of 160 years. Like the HGU, it will be granted in two cycles of 80 years each.

The three rights will be granted based on certain criteria and evaluation.

Meanwhile, Widodo added, the government will use the state budget to fund the construction of government infrastructure and facilities at IKN.