Government Says Private Investment in IKN Reaches Rp45 Trillion by 2023

The Head of the Nusantara Capital Authority (IKN), Bambang Susantono, stated that private sector investment for the construction of the new capital city reached Rp45 trillion by the end of 2023.

The details are as follows: Rp23 trillion has been disbursed for initial physical construction or groundbreaking in September 2023. Rp12 trillion was disbursed for the groundbreaking in November 2023. Subsequently, Rp10 trillion will be invested in the groundbreaking in December 2023.

Bambang added that this investment comes from several investors. He mentioned that 15 more investors are waiting in line for groundbreaking ceremonies in IKN until the end of this year.

"Therefore, a total of at least Rp45 trillion in private investment will accompany the government's investment from the State Budget (APBN)," said Bambang while attending the Pakuwon Jati groundbreaking ceremony in IKN on Wednesday (1/11/2023).

Bambang explained that the IKN development is not solely driven by the private sector but also by the APBN. He praised the performance of Basuki Hadimuljono, Minister of Public Works and Public Housing (PUPR), for building IKN's infrastructure.

"[His performance] has built market confidence. As the President said, the private sector will surely follow. The result is that the private sector has now started to get involved," said Bambang.

Private sector interest in investing is reflected in the high number of letters of interest. Bambang claimed that his office has received more than 300 letters of interest to date.

The facilities currently under construction or planned include two elementary schools, a Bank Indonesia office, a BPJS Ketenagakerjaan (Employment Social Security Agency) office, a hotel, and a shopping mall. In addition, there is a 50-megawatt solar power plant under PLN's control.

"The solar power plant symbolizes Indonesia's renewable energy and will be IKN's future energy," said Bambang.

(See also: Ministry of PUPR Allocates Rp35 Trillion for IKN Construction in 2024, Here's the Breakdown)