The Capital City of Nusantara Authority (OIKN) has responded to President Joko Widodo's directive allowing land in the Capital City of Nusantara (IKN) to be sold to investors.

Head of OIKN, Bambang Susantono, said that in the initial stage of the land sale process, it only involves the sale of land building rights (HGB) and business rights (HGU).

“What is meant by being sold is, for example, the land with building rights (HGB) owned by OIKN," said Bambang during a coordination meeting at the Kempinski Hotel on Thursday, March 14, 2024.

However, Bambang added that in certain cases, land in IKN may be considered for sale as ownership rights to investors.

Deputy Head for Funding and Investment of OIKN, Agung Wicaksono, said that OIKN currently holds land management rights (HPL) covering an area of 34,000 hectares in IKN.

He cited that although in the initial stage the land sale process only involves HGB and HGU, in certain cases, OIKN may sell Certificates of Ownership (SHM) to investors in the future.

Previously, President Jokowi said that OIKN could sell land in IKN to investors to accelerate investment realization in IKN. As of now, the total investment parked in IKN, realized through five groundbreaking phases, amounts to IDR 49.6 trillion. Meanwhile, in 2024, the IKN Authority targets total private investment in IKN to reach IDR 100 trillion.

President Jokowi previously compared the benefits of buying land prices in IKN with Jakarta, which he deemed very profitable. The Indonesian President cited that buying land in the Sudirman Central Business District (SCBD) or Sudirman Integrated Business District alone already costs IDR 200 million per square meter (M2). He considered the land prices in the Capital City (IKN) to be relatively cheap, at around IDR 1 million per square meter (m2).

"I'm inviting all potential investors while land prices [at IKN] are still low. Because if you buy land in SCBD, it's already IDR 200 million per meter, in Menteng it's IDR 150 million, in Balikpapan it's already IDR 10-15 million. Here [IKN] it's still below IDR 1 million," the President said in the IKN area, Penajam Paser Utara, East Kalimantan, last November.

Therefore, he suggested that potential investors should not delay buying land in the new Capital City, considering that land prices are continuously rising. He believes that it is highly likely that land prices in IKN will also fluctuate.