House Commission VII Appreciates Use of Local Components in Nusantara Capital Development

House Commission VII of the Indonesian House of Representatives (DPR RI) has expressed appreciation for the high level of Domestic Component Level (TKDN) utilised in the development of the Nusantara Capital City (IKN), as it simultaneously encourages the strengthening of Micro, Small, and Medium Enterprises (MSMEs) and the development of the tourism sector as part of the region’s economic development. The appreciation was conveyed by Deputy Chair of House Commission VII Rahayu Saraswati Djojohadikusumo on Friday (10/7) during a working visit to IKN. The visit, aimed at observing the development progress of the new capital city area firsthand, was received by Head of the IKN Authority, Basuki Hadimuljono. “We are certainly very pleased to hear about the considerably high TKDN, whether in the procurement of goods or the involvement of local communities, materials, equipment, and so forth in this IKN development,” said Rahayu. Beyond appreciating the physical construction, Rahayu stressed that IKN’s development must be accompanied by the strengthening of an inclusive economic ecosystem through the involvement of MSMEs and Small and Medium Industries (IKM). She believes the presence of MSMEs must become an integral part of economic growth in IKN. She asserted that MSMEs must not be left without space in IKN, given that they represent a vast number of businesses—over 90 per cent, arguably 97 per cent, of business types in Indonesia are MSMEs. “So we have certainly conveyed to Mr Basuki as Head of the IKN Authority to continue paying attention going forward, not only in terms of physical readiness but also how to continuously involve local communities and our MSMEs. Once again, we appreciate the high TKDN,” she stated. She also assessed that IKN has significant potential to develop as a new tourist destination as well as a centre for Meetings, Incentives, Conferences, and Exhibitions (MICE) activities. According to her, IKN’s appeal has already begun to form even before all government functions are fully relocated. “Before we function—meaning the executive, legislative, and judiciary—there is actually an opportunity to open up first for visitors to come, and there is also an opportunity for MSMEs to start planning where they will enter,” said Rahayu. “Of course, this will be an attraction for East Kalimantan, an attraction for Balikpapan and Samarinda. We also tried the toll road earlier; it was very smooth, even, and wide. So I think hopefully this can increase enthusiasm, not only locally but also internationally, to see that there is a new, very futuristic national capital,” Rahayu mentioned. Responding to this, Basuki Hadimuljono confirmed that the IKN Authority has implemented various programmes to enhance the capacity and competitiveness of local MSMEs so they can become part of the Nusantara economic ecosystem. One such initiative involves culinary training by bringing in professional chefs to improve the product and service quality of local business operators, enabling them to meet consumption needs within the IKN area. “Currently, consumption for activities in IKN is no longer supplied from Balikpapan. Dharma Wanita members gather culinary operators from the surrounding area, and we then bring in chefs to train them so they can develop their businesses. We want them to grow not only in the culinary sector but also in various other business fields,” said Basuki. In addition to capacity building, the IKN Authority is also expanding market access for MSMEs through the provision of business booths managed jointly with development partners. One example is through cooperation with the Artha Graha Network, which is developing the 3.8-hectare Nusantara Park as a community activity centre. “Various other empowerment programmes are also continuously being implemented, including MSME training, hospitality training, development of the IKN Digital Community, product promotion facilitation, halal certification assistance, and entrepreneurship workshops in collaboration with Bank Indonesia,” he concluded.