11/07/2024 06:13 PM

JAKARTA, July 11 (Bernama-ANTARA) -- Construction of the Nusantara Capital City (IKN) is one of the strategic steps taken by the government to stimulate an equitable economy and development across Indonesia, Minister of State-Owned Enterprises Erick Thohir said.

“Why is the government developing IKN? Our objective is simply to maintain economic growth and achieve more equitable development," he explained during a meeting with Commission VI of the House of Representatives (DPR) in Jakarta on Wednesday.

Thohir underlined that the government envisions Nusantara as a new administrative centre expected to address development gaps among regions and strengthen national infrastructure, which, in turn, is expected to stimulate economic growth.

He noted that Indonesia's future seat of government would not merely stand as an icon of infrastructure modernisation, as it would also serve as an instrument to put to rest arguments that development in the country is heavily centred on Java Island.

Thohir affirmed that the government is committed to bringing progress to all regions of Indonesia.

"An equitable economy and sustainable economic growth should be enjoyed by all islands," he pointed out.

Thohir affirmed that his ministry had proposed state capital participation (PMN) of Rp44.24 trillion (around US$2.7 billion) for 2025 to support development projects.

The proposal, approved by Commission VI of the DPR, is expected to expedite infrastructure projects and help ensure the smooth transition of power from President Joko Widodo to President-elect Prabowo Subianto.

"We seek to ensure that the incoming government transition does not lead to any confusion," Thohir concluded.


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