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 - Investasi Rp63 triliun bakal masuk IKN
11 June 2025
By Heru Febrianto
Amid global economic shifts, foreign investor interest in Nusantara Capital City (IKN) continues to rise. The IKN Authority has reported that investors from the United States to Spain are exploring opportunities to develop housing projects in IKN, with an estimated investment value of Rp63.3 trillion.
The growing interest from domestic and international investors has been evident, driven by governance improvements and the streamlining of Public-Private Partnership (PPP) collaboration processes over recent quarters.
Head of the IKN Authority, Basuki Hadimuljono, stated that investment procedures are now being made more concise and efficient, without compromising principles of transparency and accountability. He emphasised that prudence remains a priority, but unnecessary bureaucratic hurdles will be minimised through cross-ministerial and institutional coordination.
Basuki explained that the IKN Authority is facilitating private sector engagement, ensuring the completion of key infrastructure projects prioritised by the Ministry of Finance (Kemenkeu) and PT Penjaminan Infrastruktur Indonesia (PT PII) for two major developments.
The first involves the construction of eight residential towers for civil servants by PT Nindya Karya in WP 1A, comprising 288 housing units of 190 m² each. The second project entails the development of 109 landed houses by PT Indah in WP 1B and 1C, featuring 390 m² residential units. Both projects are expected to be completed and operational by 2025, meeting international quality standards, including solar panels and parking facilities.
Additionally, domestic investors such as Ciputra Nusantara and the Triniti-Truba Consortium have joined foreign investors including the CIJM-CHEC Consortium and Maxind.
Basuki revealed that Ciputra Nusantara and the IJM-CHEC Consortium have completed feasibility studies (FS) and are now undergoing design evaluation and document verification. Meanwhile, the Triniti-Truba Consortium and Maxim are finalising their feasibility studies before advancing to evaluation stages.
Beyond these six ongoing projects, three additional initiatives are led by Adhi Karya, the Samsung C&T-Brantas Abipraya Consortium, and the PJ-IC Bee Invest-Promec-Ozturk Holdings Consortium. Each has received letters to proceed (LtPs) and is currently preparing feasibility studies.
Basuki noted that investors from the United States, Turkey, Spain, and Brunei Darussalam are engaged, with an estimated housing sector investment totalling Rp63.3 trillion.
Beyond housing, the PPP scheme for road networks and multi-utility tunnels (MUTs) have also seen promising developments. Five prospective investors from China, Malaysia, and Indonesia are currently conducting feasibility studies and document evaluations, with total projected investment reaching Rp71.8 trillion, of which Rp55 trillion originates from foreign investors.
Basuki emphasised that the PPP scheme in IKN are designed not only to accelerate development but also to strengthen long-term public accountability. He explained that due diligence processes involve private entities, relevant ministries, and government auditors to uphold good governance, stating that transparency and sound governance are fundamental to every investment stage.
Deputy for Financing & Investment at the IKN Authority, Agung Wicaksono, added that private sector interest in PPP schemes remains high. Currently, nine prospective housing investors have yet to receive clearance to become unsolicited PPP initiators under availability payment schemes.
Agung noted that housing PPP proposals must take into account other projects funded through availability payment mechanisms. Investors may later join the PPP scheme as tender participants or engage through the solicited PPP model.
He explained that strong international and domestic investor interest underscores the credibility of the PPP scheme as a safe and reputable investment model. With strengthened governance, increasingly efficient processes, and adaptive leadership, PPP has become the backbone of IKN’s accelerated, inclusive, and globally open development.
Land acquisition challenges
Separately, Centre for Reform on Economic (CORE) Indonesia researcher Eliza Mardian highlighted that the PPP scheme has emerged as a key solution to financing infrastructure projects amid fiscal constraints. However, she warned that land acquisition difficulties frequently hinder infrastructure projects in Indonesia.
Eliza stressed the importance of effective communication with affected communities and ensuring proper relocation options for residents displaced by land acquisition. The government must provide fair, transparent, and reasonable compensation, she argued, ensuring no middlemen reduce community entitlements.
Clear post-relocation planning, she said, would help prevent delays and ensure infrastructure projects remain on schedule.
Another challenge frequently cited by investors in the PPP scheme is the complexity of regulations and policy inconsistencies. She noted that lack of coordination between central and local governments further obstructs infrastructure development. Excessive stakeholder involvement often weakens coordination, increasing project complexity.
Eliza also pointed out that risk allocation between the government and private sector within the PPP framework is often unclear, making investors hesitant to take on excessive risks.
Legal certainty
Meanwhile, Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), emphasised that land tenure certainty is crucial to accelerating investment interest, particularly in attracting foreign direct investment (FDI) for IKN.
AHY stated that FDI is essential for expediting development, including critical infrastructure projects. To support this, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) has mapped various areas within the new capital, analysing land contours, geographical conditions, demographics, and social structures. This data-driven approach aims to optimise investment attraction for IKN.
He stressed that the government prioritises a humanistic approach when addressing land-related issues in IKN. Balancing economic acceleration, infrastructure development, environmental preservation, and community wellbeing remains a key strategy.
"This is our approach—striking a balance between economic and infrastructure growth while ensuring environmental conservation and local community sustainability," he concluded.
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