Legal Analysis of the Foreign Direct Investment in IKN Nusantara Based on The Forest City Concept

Abstract

The capital city of Indonesia, which was previously in DKI Jakarta, moved to the IKN Nusantara on the island of Kalimantan. The construction of IKN Nusantara itself was funded in various ways, one of which was through foreign investment or FDI. Not only that, the construction of this new capital city was carried out by implementing the concept of a forest city. This research is categorized as normative research and is supported by empirical data. The normative legal research is carried out by using literature that focused on how regulations related to the development of the IKN Nusantara related to FDI, as well as regulations related to the development of the IKN Nusantara with the concept of a forest city. The result of this research showed that the procedures for foreign investment or FDI in IKN Nusantara are regulated according to the conditions of both the investors and the business being invested, as explained in Appendix II of Law Number 3 of 2022. Secondly, the effect of the correlation between FDI and the forest city concept could be shared with each of them, where the influence of forest city development in IKN Nusantara can affect various factors both beneficially and detrimentally. This research gives suggestions to the government that the revision of Law Number 3 of 2022 concerning the National Capital should include concrete regulations regarding the correlation between investment and the concept of the city to be built. Example such as harmonisation that lead to the regional authority to take control of business that wants to invest and help build the ideal forest city concept in IKN Nusantara.