Progress of IKN Development Shows Government Commitment

By: Alfian Samsudin *)

As part of the effort to advance the development of the Indonesian Capital City (IKN), a number of Finnish entrepreneurs made an official visit led directly by the Finnish Ambassador to Indonesia, Pekka Kaihilahti. This group explored investment opportunities in the Smart City sector, which is one of the main visions of IKN development. Finland, which has expertise and advanced technology in developing the Smart City concept, hopes to share its experience and technological advantages with Indonesia. This visit is also expected to strengthen bilateral relations between the two countries.

Deputy for Funding and Investment, Agung Wicaksono explained that the Finnish group reviewed Smart Pole technology and various other innovations being developed in IKN. In addition, the group also visited the Proof of Concept (POC) Smart Pole at Rumah Tekno Nusantara and several strategic locations such as the PSSI Training Center, the State Palace, and the Ceremonial Plaza. Agung emphasized that Finland has shown great interest in investing in the IKN by submitting four letters of interest or Letters of Intent (LOI), where one of the LOIs has been followed up into a Memorandum of Understanding (MoU).

This MoU between Finland and Indonesia is expected to generate real investment, so that the amount of investment, especially from foreigners, continues to increase. It should be noted that the total investment that has entered the IKN to date has reached IDR 58 trillion, including foreign investment. With the interest shown by Finland, the country is expected to become one of the significant contributors of investment.

In terms of infrastructure, the government has recorded significant progress in the development of the IKN. Until the end of December 2024, this project has achieved an average progress of 70% for work funded by the State Budget (APBN). The development process is divided into three stages.

The first stage, which took place from 2020 to March 2023, includes 40 work packages with a contract value of IDR 25.1 trillion and a completion progress of 97.2%. The second phase, from April 2023 to November 2023, involves 31 project packages worth IDR 27.6 trillion with a progress of 81.1%. Meanwhile, the third phase, which began in December 2023 and is still ongoing, includes 38 work packages with a contract value of IDR 36.2 trillion and a progress of 32.1%.

In addition to funding through the APBN, the government is certainly utilizing non-APBN mechanisms to accelerate the development of the IKN, as exemplified previously, namely cooperation with Finland. By the end of the year, 16 work packages funded by non-APBN have shown an average progress of 92%. This approach reflects the government’s success in attracting the participation of the private sector and strategic partners.

The housing development project for State Civil Apparatus (ASN) has also shown rapid progress. Four types of ASN housing, namely SN1 to SN4, each recorded progress that was almost approaching the final stage. With details of SN1 reaching 91.3%, SN2 at 85.3%, SN3 at 85.1%, and SN4 reaching 87.8%, this development is designed to ensure the comfort of ASN who will serve in the IKN.
Meanwhile, the IKN Authority also emphasized the importance of developing an education ecosystem that is oriented towards life in the new capital city.

Deputy for Socio-Cultural and Community Empowerment, Alimuddin, explained that the first phase of development involved collaboration with the provincial and district/city governments, considering that the area is still under their administration. Secondary and elementary education, such as elementary and junior high schools, are still the authority of the region, but still involve coordination with the IKN Authority.

According to Alimuddin, the IKN Authority formulated a life-based education roadmap to produce graduates who are ready to face future challenges. This education program is designed so that high school graduates have adequate provisions to live and work in society, not only focusing on the tertiary pathway. The education system with the potential of the IKN’s future also needs to be adjusted, so that it continues to develop until 2045 towards Golden Indonesia.