The Nusantara Capital City (IKN) Authority has announced that investors from China, Malaysia, and Indonesia are preparing to invest approximately Rp71.8 trillion (US$4.4 billion) for road infrastructure and a Multi-Utility Tunnel (MUT) network development in the future capital city.

Of the total projected investment, Rp55 trillion is expected to come from Chinese and Malaysian investors, according to IKN Authority Head Basuki Hadimuljono.

“Transparency and sound governance are the core foundations of all investment phases,” Basuki said as quoted in a statement on Monday, June 9, 2025.

The infrastructure projects, which include both roads and the integrated MUT system, are planned under a Public-Private Partnership (PPP) scheme. The PPP model in IKN involves two return mechanisms for investors: user charges and availability payments (AP), depending on the nature of the project.

Investor confidence

Basuki emphasized that the use of PPPs in developing Indonesia's new capital − located in parts of North Penajam Paser and Kutai Kartanegara regencies in East Kalimantan − continues to gain positive momentum.

“The PPP scheme for IKN development is increasingly showing positive trends,” Basuki said during a briefing in Sepaku, North Penajam Paser, on Tuesday, June 10, 2025.

In addition to road and tunnel projects, the housing sector has also attracted significant foreign interest under the PPP model. Investors from the United States, Türkiye, Spain, and Brunei Darussalam have expressed commitments totaling around Rp63.3 trillion for residential development within IKN.

Currently, five prospective investors from China, Malaysia, and Indonesia are in the process of completing feasibility studies and evaluating documentation for their participation in the road and MUT infrastructure projects.

“The total indicative investment value is Rp71.8 trillion, of which Rp55 trillion originates from overseas investors,” Basuki cited.

He added that PPPs are not only accelerating the development timeline of IKN, but are also reinforcing long-term public accountability. The investment process is being streamlined to be more efficient and business-friendly, without compromising the principles of transparency and oversight.

Despite this efficiency push, the IKN Ajuthority is committed to maintaining rigorous due diligence. Unnecessary bureaucratic hurdles will be minimized through coordinated efforts between ministries and government agencies.

Investor interest − both domestic and international − has continued to grow in recent quarters, thanks to improved governance frameworks and simplified investment procedures.

“The PPP scheme is increasingly seen as a reliable and secure investment model by the business community,” Basuki concluded.