Foxconn Eyes Indonesia’s Future Capital Nusantara

trentboultAugust 13, 2022

Indonesia’s plans to move its capital from Jakarta to Penajam Paser Utara in East Kalimantan are becoming more and more a reality.

In “Power Lunch” CNBCIndonesiaof During the virtual talk show, investment status in IKN (Indonesia’s new capital Nusantara) was shared by Indonesia’s Minister of Investment Bahlil Lahadalia.

Lahadalia announced that Foxconn has signed a memorandum of understanding (MoU) with the Ministry of State Owned Enterprises (BUMN) and domestic private companies to establish the electric vehicle (EV) industry in the country.

Still, Foxconn and Indonesia are in the “feasibility study” stage. Indonesia plans to hold a groundbreaking ceremony by the end of this year.

Several countries have expressed interest in investing in IKN. More specifically, Japan, South Korea and the United Arab Emirates have shown interest, Lahdaria said.

“Some countries plan to invest $20 million in IKN,” Lahadalia added.

Further discussion will take place in September 2022.

Highlights of IKN (Indonesia’s new capital, Nusantara)
	situation
new state capital	1. The name of the new capital is Nusantara. 2. The name Nusantara was chosen because the term has long been known and is symbolic in the international world.
area coverage	1. Nusantara will be built in Penajam Paser Utara, East Kalimantan or PPU Kaltim. 2. IKN’s land area consists of IKN Nusantara area of 56,180 Ha and development area of 199,962 Ha.
special government	1. In the new capital, a special local government (Pemdasus), known as the IKN Authority, is formed. 2. Government is at the state level. 3. The Archipelagic IKN Authority shall perform the functions and roles of the Special Local Government as stipulated in the IKN Act. central government.
Authority	1. This is a ministry level agency that organizes local government specifically for IKN Nusantara. 2. Archipelagic IKN Authorities shall have the right to lay down the rules governing the IKN Territorial Government and/or to carry out the preparation, development and relocation activities of the provincial capitals.
the head of authority is appointed by the president	1. The Archipelago IKN Authority shall be led by the Chief of Nusantara IKN Authority and assisted by the Deputy Chief. 2. Government posts are at the ministerial level and are directly appointed and dismissed by the President in consultation with the DPR.
Transfer ASNs	The IKN law also regulates the mobilization of state institutions (ASN) as well as the transfer of state institutions to new capitals.
funding scheme	1. The financial plan for capital relocation is stipulated in the IKN Law. 2. Relocating the capital will cost at least IDR 501 trillion.