Capital investment: Foreign investment in IKN Nusantara reaches Rp1.5 trillion
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.
Bisnis Indonesia - Penanaman modal: Investasi asing IKN Nusantara tembus Rp1,5 triliun
23 December 2024
By Anshary Madya Sukma
Bisnis, North Penajam Paser – The Nusantara Capital City Authority (OIKN) reported that foreign investment in Nusantara Capital City (IKN) has reached Rp1.5 trillion.
OIKN Funding and Investment Deputy Agung Wicaksono stated that this amount came from companies based in countries ranging from China to Russia, which have recently conducted groundbreaking activities.
"[Foreign investment] includes China's Delonix to construct a hotel, which has already commenced groundbreaking. Additionally, another foreign investor from Russia, Magnum, which already operates many hotels in Bali, is also entering IKN," he said in IKN on Friday (20/12).
He explained in detail that the largest foreign investment comes from Russia, through the property company Magnum, amounting to Rp800 billion.
Next, China, through Delonix Group, has invested Rp500 billion in IKN. The remaining Rp150 billion comes from Australia Independent School (AIS).
“Yes, the total is around Rp1.5 trillion,” he added.
In addition to these three companies, several other foreign firms are also planning to invest in Indonesia.
For example, a Malaysian company is set to invest in the property sector. Additionally, Japanese companies have expressed interest in investing as well.
“Companies from China and Malaysia aim to implement the public-private partnership (PPP) scheme to construct housing. In the renewable energy sector, there are companies from Singapore and the United Arab Emirates,” he added.
KIPP development
Previously, OIKN assured that the development of the Central Government Core Area (KIPP) will continue as the relocation of civil servants progresses in stages, beginning in 2025.
Troy Pantouw, the Head of OIKN Public Communication Special Staff, stated that the development of IKN is making significant progress. He noted that the construction of executive infrastructure is nearly complete.
Troy mentioned that, in line with the Government’s target, the development of legislative and judicial infrastructure is now the main focus of OIKN.
The development is designed to ensure that Nusantara can fully function as a centre of government, fulfilling its three roles: executive, legislative, and judicial.
“The legislative infrastructure includes the construction of the House of Representatives (DPR), the People’s Consultative Assembly (MPR), and the Regional Representative Council (DPD) buildings. Meanwhile, the judicial infrastructure encompasses the Supreme Court building and other legal institutions. The construction is set to be completed in 2028, aligning with efforts to make Nusantara a fully functional capital city,” Troy stated during a press conference on Tuesday (17/12).
Of the 109 construction packages funded by the state budget (APBN) and signed between 2020 and 2024, the construction progress in IKN has reached 61.7%. In terms of investment, OIKN reported that the realised amount has reached Rp58.4 trillion, following eight groundbreaking ceremonies.
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