IKN Authority Unveils ASEAN Countries’ Interest in Property, Renewable Energy Investments

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 3 September 2023
Category: News
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President Joko “Jokowi” Widodo with the winner of the IKN logo contest Aulia Akbar, at the State Palace, Jakarta, Tuesday (05/30). (Photo by: PR of Cabinet Secretariat/Agung)

The Nusantara Capital (IKN) Authority has revealed that the total investment in the entertainment sector stands at Rp20 trillion or nearly a quarter of the private funding allocated for the IKN development.

“From the private sector, the total investment has reached Rp20 trillion that will cover projects in the entertainment sector, including hotels and green open spaces,” the IKN Authority’s Deputy for Funding and Investment Agung Wicaksono said, in Jakarta, Sunday (09/03).

According to Agung, the IKN Authority has received 270 letters of intent (LOI) for investment from potential investors for the IKN development.

“Most of the potential investments are coming from domestic companies, which is more than half of the total, while some of them are from Singapore, Malaysia, Japan, and Korea,” he said.

The IKN Authority’s Deputy also mentioned that two Malaysian property companies have committed to construct 20 apartment towers within the IKN.

Currently, he added, these two companies are in the process of conducting feasibility studies and are awaiting government evaluation before they can proceed with construction.

“Regarding investment from Singapore, they are most interested in renewable energy and waste processing,” the Deputy said.

Agung further said that the 2020-2024 National Medium-Term Development Plan (RPJMN) stated that the IKN funding requirement amounting to Rp466 trillion is sourced from the State Budget of Rp90.4 trillion, business/private entities of Rp123.2 trillion, and Government and Business Entities Cooperation (KPBU) scheme of Rp252.5 trillion.

Agung also pointed out that private funding for the IKN development which is dominated by domestic private companies will be mainly allocated for the construction of the Presidential Palace and several ministry offices (zone 1A).

“Zone 1 will include the presidential palace, Monas (national monument), and so on. We will prioritize this zone first as it must meet the target [to complete] by 2024. The Government Central Core Area (KIPP) will occupy about 6,000 hectares of land. After it completes, we will move forward with other construction projects within the IKN,” he remarked. (Communication & Media Team of 43rd ASEAN Summit/UN) (RIF/MMB)

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