The government is targeting a massive influx of investment for the\nNusantara Capital (IKN) megaproject before President Joko Widodo\u2019s term\nends in October 2024. This affirmation comes alongside efforts to\nexpedite the completion of basic infrastructure and supporting\nfacilities in East Kalimantan on Tuesday (15\/08\/2023).<\/p>\n
Deputy for Investment Cooperation at the Ministry of Investment\/BKPM,\nRiyatno, revealed that several investors from Singapore, Malaysia, to\nChina have shown strong interest. Citing Investortrust, the government\nis also facilitating direct site visits in Penajam Paser Utara and Kutai\nKartanegara to convince these prospective investors.<\/p>\n
\u201cThere are already investors from Singapore and Malaysia interested\nin investing in IKN, as well as many from China, and we are facilitating\ndirect site visits to IKN (in parts of Penajam Paser Utara Regency and\nparts of Kutai Kartanegara Regency, East Kalimantan Province). This is\nto make it more convincing. The first-phase investments are more towards\nproperty and its supporters, linked to IKN which will become a new\nenvironmentally friendly capital. In the latest meeting, discussions\nalso covered more conducive foreign ownership, opening up opportunities\nfor foreign investors, so that foreigners are interested in entering our\nproperty sector,\u201d said Riyatno, Deputy for Investment Cooperation at the\nMinistry of Investment\/BKPM.<\/p>\n
The development of IKN is designed to adopt the concept of a\nnature-based smart city with an electric-powered transportation system.\nRiyatno added that the Ministry of Investment has a special mandate to\npromote this project to businesses in Southeast Asia through an\nexhibition forum in September.<\/p>\n
\u201cThe Ministry of Investment\/BKPM is also tasked with handling the\nASEAN forum exhibition plans, one of which is for IKN. This allows\ndirect communication with ASEAN business players (related to the 43rd\nASEAN Summit series on 5-7 September 2023),\u201d explained Riyatno, Deputy\nfor Investment Cooperation at the Ministry of Investment\/BKPM.<\/p>\n
The funding needs for IKN development up to 2024 are estimated at Rp\n466 trillion to Rp 486 trillion. The allocation of these funds comes\nfrom the State Revenue and Expenditure Budget (APBN) at 19%, while the\nremaining 81% or around Rp 393.66 trillion is expected to come from\nprivate sector investments.<\/p>\n
On the other hand, Head of Research Team & Strategist at Mirae\nAsset, Robertus Hardy, predicts that economic growth will also be driven\nby the cement, automotive, and telecommunications sectors. Increased\npost-pandemic societal mobility is believed to be the main driver\nstrengthening the Composite Stock Price Index (IHSG) towards the 7,600\nlevel.<\/p>\n
\u201cThe cement, automotive, and telecommunications sectors will drive\nthe IHSG to 7,600 by the end of the year (from the 15 August 2023\nposition at 6,915),\u201d said Robertus Hardy, Head of Research Team &\nStrategist at Mirae Asset.<\/p>\n
The research team assesses that these selected sectors have the\npotential for returns exceeding the general index growth. Purchases of\nmotor vehicles and building materials sales volumes are predicted to\nincrease significantly along with the recovery of household consumption\nin the second semester of this year.<\/p>\n
\u201cAll three sectors have the potential for higher returns than the\nIHSG, which is currently still burdened by the commodities sector. In\nour view, societal mobility, mainly, will drive car and motorcycle\npurchases,\u201d stated Robertus Hardy, Head of Research Team &\nStrategist at Mirae Asset.<\/p>\n
Head of Business Innovation at Mirae Asset, Wisnu Aditya, emphasised\nthe importance of information access for investors to boost confidence\nin transacting in the capital market. This aligns with the company\u2019s\nvision to facilitate investment access for all levels of society through\nan integrated platform.<\/p>\n
\u201cNot only research, but also stock recommendations from experts,\neconomic data, technical analysis, fundamental stock screener, news,\nforums, media centre, and selected stocks are available; there\u2019s a\none-stop solution for Indonesian capital market investors and traders\nlike FIMA,\u201d said Wisnu Aditya, Head of Business Innovation at Mirae\nAsset.<\/p>\n
The company\u2019s operational stability is also affirmed by management\nthrough reports of net working capital value. The company\u2019s current\nfinancial position is claimed to far exceed the minimum threshold set by\nIndonesia\u2019s financial services regulator.<\/p>\n
\u201cThe adjusted net working capital value (MKBD) also shows the health\nof the company\u2019s operations and is one of the largest. Mirae Asset\u2019s\nMKBD remains stable at around Rp 1.3 trillion in the last 6 months and\nRp 1.4 trillion in the last year. These figures are far above the\nminimum provisions set by regulations and legislation for securities\ncompanies, namely Rp 25 billion, along with other provisions,\u201d said\nIvonne Kaharu, Head of Corporate Secretary at PT Mirae Asset Sekuritas\nIndonesia.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-targets-major-foreign-investment-for-ikn-by-2024-1778586798", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }