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Investor Daily - Jurus OIKN Gaet Pengembang di Nusantara
19 May 2025
By Heru Febrianto
Jakarta, ID – The Nusantara Capital Authority (OIKN) is offering 16 investment opportunities in the housing and commercial sectors within the Core Government Area (KIPP) of Nusantara to Real Estate Indonesia (REI). Several incentives have been prepared, including tax holidays, exemption from Levy on Acquisition of Land and Building Rights (BPHTB), government-borne Income Tax (PPh 21), and a maximum land-use permit (HGB) of up to 160 years.
OIKN Head Basuki Hadimuljono invited REI members to continue investing in Nusantara. He made this statement during a visit by REI’s board and members to the Coordinating Ministry Building 3 in KIPP Nusantara on Friday (16/5), an event held as part of REI’s 53rd anniversary celebrations.
Basuki emphasised that IKN is open to all parties, including property business associations such as REI, to contribute to the development of various strategic sectors, particularly housing and commercial zones. He underlined the crucial role of the private sector in advancing IKN’s development.
He further explained that investment opportunities in IKN remain vast, especially in the housing ecosystem. He encouraged REI to take part in providing various types of housing, including both commercial and subsidised homes, some of which can be developed through the Public-Private Partnership (PPP) scheme.
"I believe the market potential in IKN is clear and guaranteed because this development is designed to meet the needs of civil servants and state officials assigned to Nusantara, particularly to support the judiciary and legislative office ecosystem, which will soon be established," Basuki stated in a press release on Sunday (18/5/2025).
During the event, OIKN presented 16 investment opportunities in the housing and commercial sectors spread across Planning Sub-Areas (SWP) 1A, 1B, and 1C within the KIPP. The involvement of REI is expected to mark the private sector’s active role in building Indonesia’s new capital in Nusantara.
To create a favourable investment climate, the government is offering a range of attractive incentives for businesses investing in IKN. These include a 100% exemption from BPHTB, competitive land ownership schemes, and fiscal benefits such as tax holidays for investments exceeding Rp10 billion, including those in the SME sector.
Additionally, the government will cover Income Tax (PPh 21) for all employees residing in IKN, exempt Value-Added Tax (PPN) on property and rental services, and provide a super tax deduction of up to 200% on gross income for investors who make donations. Moreover, import duties will be waived for four to six years to facilitate the development process.
REI ready to collaborate
Responding to the invitation, REI Chairman Joko Suranto expressed appreciation and enthusiasm for the investment opportunities in IKN.
"We at REI warmly welcome the invitation and support from OIKN. This is a historic opportunity for property entrepreneurs to help shape Indonesia’s new identity. We are ready to collaborate and actively contribute to making Nusantara a sustainable and inclusive city of the future," Joko stated.
He affirmed that REI is always prepared to support government programmes—not only in building subsidised homes for low-income communities through the Three Million Homes Programme but also in developing new townships, industrial areas, and special economic zones (SEZs), including tourism support zones.
Joko explained that the property sector, including housing, has often been viewed solely as an economic growth indicator. However, he believes it can serve as a key driver of national economic growth.
With 185 related industries, the property sector significantly impacts the national gross domestic product (GDP), contributing 14%. It also accounts for 9% of state budget revenues (APBN), 35-55% of local revenue (PAD), and employs 14-17 million people.
Moreover, the sector plays a role in reducing poverty by 8% and addressing stunting concerns, which aligns with President Prabowo Subianto’s priorities.
"Research by REI and the Universitas Indonesia’s Management Institute (LM UI) shows that every Rp112 trillion invested in property contributes 0.56% to the national economy. If the Three Million Homes Programme is successfully implemented, President Prabowo Subianto will achieve a major milestone—not only by helping citizens own homes but also in boosting economic growth targets," he stated.
Joko also expressed confidence that various challenges in accelerating the Three Million Homes Programme could be resolved, especially now that a specialised ministry is overseeing housing and residential affairs.
He stressed that the programme would struggle to succeed without the involvement of longstanding property developers who have supported the government’s efforts to build homes for low-income communities.
Housing for communities in IKN
Separately, OIKN Head Basuki Hadimuljono announced that the Ministry of Housing and Residential Areas (PKP) would take proactive steps to provide housing for the general public in IKN.
He made this statement while accompanying Housing Minister Maruarar Sirait on a site inspection of several housing development locations in IKN. The visit aimed to assess the readiness of existing housing infrastructure in the capital city.
"The Minister’s visit brings innovation—he intends to build apartment towers not just for civil servants in defence and security roles but also for the general public. Even a single tower represents progress, showing that IKN will provide housing for all citizens," Basuki remarked.
Echoing this sentiment, Housing Minister Maruarar Sirait stressed that housing policy should align with the President’s directive for inclusivity, ensuring access for all segments of society.
"The President has instructed that housing should also be available for lower-income communities. While civil servants, the military, and police are important, our people also deserve equal opportunities," Maruarar stated.
This initiative underscores the government’s commitment to establishing IKN as an inclusive and socially just city by providing access to proper housing for all citizens.
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