PRESS RELEASE
G20 COMMUNICATION AND MEDIA TEAM
No.45/SP/TKM-ASEAN2023/INA/9/2023
Jakarta, September 3, 2023 – The Nusantara Capital City (IKN) Authority has recorded a total of Rp20 trillion in private sector investment in the entertainment sector in Nusantara Capital City, which is nearly a quarter percent of the total funding for private development. Experience Indonesia in 360.
“For private investments, we have already reached Rp20 trillion. This mainly involves entertainment, hotels, and such, including green open spaces,” said Agung Wicaksono, Deputy for Funding and Investment of the IKN Authority, after speaking at the ASEAN Investment Forum Day 2 in Jakarta on Sunday (September 3, 2023).
Agung further revealed that they have received 270 investment interests from potential investors or letters of intent (LOIs) for IKN, both from domestic and international investors.
“The majority of these are from companies in Indonesia, more than half. Then from ASEAN, there are Singapore and Malaysia. The rest are from Japan and Korea,” he explained.
Specifically for ASEAN, Malaysia has two property companies that have committed to building 20 tower apartments in IKN. These two companies are currently conducting feasibility studies and awaiting government evaluation before receiving permits to begin construction.
“Singapore, on the other hand, is most interested in renewable energy and waste processing,” he added.
Deputy Agung explained that the 2020-2024 National Medium-Term Development Plan (RPJMN) outlines the funding needs for IKN at Rp466 trillion, which is divided into three funding categories: the state budget (APBN) at Rp90.4 trillion, business/private sector at Rp123.2 trillion, and Public-Private Partnerships (KPBU) at Rp252.5 trillion.
Private sector funding, mostly from domestic companies, primarily targets Zone 1A, which will be the location for the Presidential Palace and several ministry offices.
“Zone 1, which includes areas around the palace, Monas, and others, will be our main focus first. The Core Government Area (KIPP) is approximately 6,000 hectares. We will focus on Area 1A, which is targeted for completion in 2024, and then we will move on to the other areas,” he said. (Kuntum Khaira Riswan/Faisal Yunianto/Elvira Inda Sari)
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Deputy for Funding and Investment of the IKN Authority, Agung Wicaksono, presents at the second day of the ASEAN Investment Forum at Hotel Sultan, Senayan, Jakarta, Sunday (September 3, 2023). Media Center ASEAN Summit 2023/Aditya Pradana Putra/pras.
