Controversy of IKN as a tourist object
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Pro kontra IKN sebagai objek wisata
20 November 2024
By Ichsan Amin
Jakarta, ID – The new Nusantara capital city (IKN) in North Penajam Paser, East Kalimantan, is currently a magnet for domestic tourists. The Nusantara Capital City Authority (OIKN) records that IKN receives visits from thousands of tourists per day.
The Director of Investment and Ease of Doing Business at OIKN, Lazuardi Nasution, stated that the IKN area could be designated as a tourist attraction, and therefore, his team will serve the visitors. Currently, IKN is still open to the public with an average number of daily visitors reaching 3,000 to 5,000.
“We believe that IKN has now become one of the tourist destinations, and of course, we must serve you if you wish to visit IKN,” said Lazuardi, as quoted by Antara in Jakarta, Tuesday (19/11/2024).
He added that, in order to facilitate access for visitors, his team is working to complete the construction of the toll road to IKN, which will reduce the travel time from Balikpapan from the previous 2.5 hours to 45-50 minutes.
“Hopefully, it can be completed by December. With the new toll road, it is expected that the travel time from Balikpapan to IKN will be around 45 to 50 minutes,” he concluded.
Currently, the construction of Pulau Balang toll access as a shortcut route to IKN is still using an open and close scheme.
A public policy observer from Universitas Trisakti, Trubus Rahadiansyah, stated that the presence of the public as visitors to IKN is considered acceptable, as the public or visitors are still curious about the development of IKN in North Penajam Paser, East Kalimantan.
“I think it is perfectly acceptable because, after all, the development of the new capital city is also intended for the general public. This is similar to the ongoing process of constructing the high-speed railway, which is also visited by many people. This can also serve as legitimacy for how the development process of the new capital city can continue,” he said to Investor Daily.
According to him, the presence of visitors to the new capital city can also serve as legitimacy for how the public has high hopes for the continuity of IKN. This means that, in addition to relying on the state budget, the continuity of IKN will heavily depend on private and foreign investors in a phased manner.
“We know that President Prabowo is abroad, possibly to attract foreign investors to invest in Indonesia, because according to the IKN Law, the development of IKN is built on the concept of Public-Private Partnership (PPP),” he concluded.
Considered inappropriate
Meanwhile, another public policy expert, Agus Pambagio, expressed pessimism about the timely progress of IKN’s development. He believes that the development of IKN will continue but not as quickly as expected.
“That is the concern, because this is a different administration. IKN will still be accommodated but not much focus will be placed on it, as President Prabowo also has his own key priorities in his administration,” he explained.
However, the openness of IKN to visitors is considered inappropriate. This is because IKN is still under construction and must remain sterile to prevent any potential damage during the development process.
“I also wonder who would want to go there? Hopefully, it does not rain, because if it does, the conditions will be muddy and could potentially cause other issues,” he added.
Agus Pambagio added that developing infrastructure on the scale of a national capital requires considerable time. However, it also demands commitment and political will from the government.
“Building a national capital in any country takes time. At the very least, it takes about 20 years. The people going there need to be managed—where they will live, where they will shop, where they will study. If it is not allowed, is there a cost-of-living allowance?” he explained.
Agus hopes that IKN will not be regarded as a tourist attraction open to everyone while its construction is still ongoing.
“It is not an issue if the buildings or infrastructure visited are 100% complete, but there must be someone managing them as well. How can IKN be turned into a tourist attraction?” he asserted.
A business opportunity
The rising interest of the public to visit the new Nusantara Capital City (IKN), presents a business opportunity for several sectors, one of which is the airline Garuda Indonesia. Starting Monday (18/11), the state-owned airline began operating two of its newest routes: Denpasar-Balikpapan (Round trip) and Makassar-Balikpapan (Round trip).
The Denpasar-Balikpapan route will be served by a B737-800NG aircraft with a capacity of 162 passengers, available three times a week on Mondays, Wednesdays, and Fridays. Meanwhile, the Makassar-Balikpapan route will be served by the same type of aircraft four times a week on Mondays, Tuesdays, Thursdays, and Saturdays.
Previously, Lion Air also launched a new route from Balikpapan to Lombok (Round trip) with a flight frequency of three times a week, with regular flights scheduled on Wednesdays, Fridays, and Sundays.
Corporate Communications Strategic of Lion Group, Danang Mandala Prihantoro, explained that this new route not only provides easier and more comfortable direct flight services between two popular destinations but also brings significant benefits for the public, businesspeople, and tourists. Among these benefits are improved accessibility between East Kalimantan and West Nusa Tenggara, supporting the development of IKN, and opening doors for more economic and tourism opportunities in both regions.
“With the operation of this route, Lion Air is committed to enhancing air connectivity in Indonesia, providing the best service for passengers, and actively participating in regional economic development efforts,” he explained.
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