OIKN Chief Resigns, Apindo Concerned About Investment Certainty in IKN
Tuesday, 04 June 2024
The Chairman of the Indonesian Employers Association (Apindo), Shinta Widjaja Kamdani, expressed business leaders' concerns regarding investment certainty in the new capital city (IKN) in East Kalimantan following the resignation of the Head and Deputy Head of the IKN Authority (OIKN).
The appointment of new heads for the OIKN is seen as potentially prolonging the development process of the IKN, particularly in terms of coordination with business players.
President Joko Widodo (Jokowi) has appointed the Minister of Public Works and Public Housing (PUPR), Basuki Hadimuljono, and the Deputy Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Raja Juli Antoni, as the acting Head and Deputy Head of OIKN.
"We are concerned whether they will have enough time, focus, and energy needed to effectively lead the OIKN, especially regarding investment certainty and managing investor relations," Shinta told Media Indonesia on Tuesday, June 4, 2024.
Several key aspects that Apindo hopes the acting head and deputy head of OIKN will pay special attention to in creating investment certainty include the status and ownership/management rights of land in IKN and its surrounding areas. With clarity on land status, Shinta believes that investors will no longer face issues related to land acquisition.
Project Continuity Post-Presidential Transition
Furthermore, Shinta continued, there needs to be certainty regarding the continuation of ongoing projects after the presidential leadership transition in Indonesia. This also includes plans for population relocation to IKN.
"These three aspects are crucial in the eyes of business players and investors to make appropriate investment decisions in IKN," Shinta explained.
She noted that IKN is a large and ambitious project amid a government transition period. Therefore, clear and effective leadership is necessary in OIKN to complete ongoing projects.
"With the appointed interim leaders, we hope that the ongoing development process will not stall or become unclear. This is to avoid creating business uncertainty for related stakeholders, including investors," Shinta emphasized.
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