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Home GovAct

Govt assigns AOE to stimulate activities to prevent IKN from becoming a ghost town

IKN will leverage its Authority-Owned Enterprise (AOE) to stimulate activities by developing supporting facilities, including entertainment venues, shopping areas, and tourist attractions

Haris Sunandar by Haris Sunandar
July 31, 2024
in GovAct, News
0
President Jokowi and Minister Basuki Hadimuljono inspected IKN construction. Govt will assign AOE to stimulate activities in the new capital. Credit: Nusantara Capital Authority

President Jokowi and Minister Basuki Hadimuljono inspected IKN construction. Govt will assign AOE to stimulate activities in the new capital. Credit: Nusantara Capital Authority

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Heaptalk, Jakarta — Several experts estimated that Nusantara Capital (IKN) could become a ghost town due to the current reluctance of residents to move there.

To address this, the Minister of Public Works and Housing (PUPR) and Acting Head of the Nusantara Capital Authority, Basuki Hadimuljono, revealed strategies to break this prediction  According to Basuki, the Nusantara Capital Authority currently has a Authority-Owned Enterprise (AOE).

This enterprise is assigned to stimulate public activities in Nusantara Capital by developing supporting facilities such as entertainment venues, shopping areas, and tourist attractions. “We have what is called a Authority-Owned Enterprise. We are focusing on activities that support and create vibrancy in this city,” said Basuki after a limited meeting with President Jokowi at Garuda Palace, Nusantara Capital, on Monday (07/29).

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Basuki explained that AOE could build cinemas, utilize existing infrastructure in government ministry offices, or create lively spots at national axes. He stated, “For example, building cinemas, utilizing infrastructure already built in ministry offices or areas, and creating vibrancy at national axis points.”

Additionally, the government is encouraging private investors to join in. “Thus far, there have been groundbreaking events for hotels, shopping centers, and more in IKN,” Basuki added.

Regarding the progress of IKN’s development, Deputy Minister of ATR/BPN Raja Juli Antoni conveyed President Joko Widodo’s message that the new capital in East Kalimantan must be built to high standards. According to him, IKN will not be completed by August 17, 2024, due to the target of providing infrastructure for the Independence Day celebration on August 17 at IKN.

“I’d like to clarify the widespread misconception that IKN will be finished by August 17. That’s incorrect. This is a long-term project that will not be completed soon,” Raja Juli said after the limited meeting with President Jokowi at Garuda Palace, Nusantara, on Monday (07/29).

On this occasion, Raja Juli also addressed public concerns about the VVIP airport in IKN, which appears unlikely to be completed by the August 17, 2024 deadline. Raja Juli conveyed Jokowi’s message that airport construction should prioritize safety. The focus should be on ensuring safety rather than hastening construction. “Including the airport, safety comes first. We must not sacrifice safety for speed,” Raja Juli concluded.

Tags: AOEauthority-owned enterpriseIKNnusantara capital authority

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