IKN Authority Receives 304 Letters of Interest in Investment; This is the Most Popular Sector

Based on data from the Nusantara Capital City Authority (IKN), 304 letters of intent (LOIs) have been received from domestic and foreign investors as of December 2023.

"Of those 304 LOIs, the sectors with the most interest are goods and services, energy, and property," said Naufal Aminudin, Director of Financing for the IKN Authority, during a socialization event for Law No. 21/2023 concerning Amendments to Law No. 3/2022 concerning the State Capital, on the Bappenas RI YouTube channel on Monday (11/12/2023).

He detailed that the IKN development in the goods and services sector has received 64 LOIs, energy 52 LOIs, and property 38 LOIs.

Next are the property and water sectors, each recording 17 LOIs.

This is followed by the mixed-use sector (16 LOIs), transportation (16 LOIs), health (15 LOIs), education (15 LOIs), and office space (12 LOIs).

Meanwhile, waste management, finance, construction, township, and industrial zones are the least attractive sectors for investors, with fewer than 10 LOIs received by the end of the year.

In addition, for development under the Government and Business Entity Cooperation (KPBU) scheme, there are nine housing projects for civil servants that will be undertaken by domestic and foreign investors.

"These are currently undergoing feasibility studies before proceeding to the transaction phase," said Naufal.

Besides housing, there are also KPBU projects in the education sector. Therefore, as of December 2023, there are 10 KPBU projects currently being processed by the IKN Authority.

"The total estimated investment through the KPBU scheme currently stands at approximately Rp55 trillion," said Naufal.

He stated that the investment value of projects under the KPBU scheme is predicted to grow in the future due to high interest.

"To date, investor interest in investing through this scheme is relatively very high," said Naufal.

(See also: IKN Spending Reaches Rp13 Trillion as of October 2023)