2023-12-11 11:43:38
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The IKN Authority Body explained the high construction costs at IKN. FOTO/doc.SINDOnews
JAKARTA – Deputy for Funding and Investment IKN Authority Body Agung Wicaksono revealed the high construction costs in the National Capital (IKN) of the archipelago. He said that the high costs had no effect on investor interest.
“So far, no. So, for example, if Pakuwon is still running, they are more concerned about the situation on the field which they need to be careful about because the design must be green, and the contour of the land is different. So that’s the only thing that makes them have to be careful in planning and development,” said Agung when met after the IKN International Financial Center Workshop in Jakarta, Monday (11/12/2023).
According to him, potential investors must first understand and carry out analysis in the field before starting to invest capital in IKN, including considering construction costs which tend to be more expensive when compared to urban areas.
Agung believes that investors certainly have their own considerations in estimating construction costs at IKN, if for example it is more expensive. Considering that construction materials to build IKN still have to be imported from outside the IKN area.
“That’s something that investors have calculated, so they have calculated the materials because the need has indeed increased a lot, yes, but they definitely have a solution to overcome it,” he continued.
On a different occasion, the Head of the Archipelago Capital Authority (OIKN), Bambang Susantono, admitted that the supply of construction materials at construction sites was indeed experiencing a slowdown. This is because currently massive basic infrastructure development and several development projects from the private sector are being carried out, so the need for materials is increasing.
Bambang said that one of the reasons construction materials had to be imported from outside was because the IKN development concept itself had a commitment not to damage the environment, one of which was mining activities.
“We at IKN don’t allow a moratorium on all kinds of mining, because we want to be a green area. So they have to look from outside, and from time to time there will be dynamics like that,” he continued.
When met separately, the President Director of Pakuwon Jati, Alexander Stefanus Ridwan Suhendra, said that one of the obstacles to the development process at IKN was the difficulty of finding materials. This ultimately has an impact on building costs which are also not cheap.
“I think the incentive is okay, it’s enough in my opinion. Even though it’s not cheap to build there, because all kinds of building materials come from outside the island. So the cost is just more expensive,” concluded Stefanus.
(nng)
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