Two Indonesian conglomerates, Djarum Group and Wings Group, have declared their decision to refrain from participating in the commercial projects of the Nusantara Capital City (IKN). Instead, both conglomerates have opted to engage in the development of a Botanical Garden, a non-commercial project within the IKN.
This announcement from Wings Group follows circulating reports indicating the withdrawal of Djarum and Wings from the consortium overseeing the Aguan project in IKN. The Botanical Garden is part of the development initiative by the National Capital Authority, encompassing the creation of a botanical garden, green corridors, and a safari park within the IKN area.
Budi Darmawan, Corporate Communications Manager at Djarum, clarified that their commitment from the outset was solely directed towards the development of a non-profit public space, namely the botanical garden. “From the beginning, Djarum’s commitment was focused on developing a botanical garden, somewhat akin to CSR, as a botanical garden is much needed in the National Capital, with a focus on greenery,” explained Budi to Bisnis.com last Thursday.
He said further that the development of the city forest in IKN is to be undertaken by the Bakti 5 Djarum Foundation, independently of the Nusantara Consortium. However, Budi emphasized that they remain open to potential affiliations or partnerships with various entities, including the Nusantara Consortium in the future. “In essence, when the consortium developed by other partners leans towards investments like building hotels, apartments, and offices, we are not heading in that direction. Our focus is more of a CSR nature,” he added.
In a similar vein, Sheila Kansil, Head of Corporate Communications & CSR at WINGS Group Indonesia, affirmed that the absence of the Wings Group’s name from the Nusantara Consortium membership list is due to their commitment to building a non-profit Botanical Garden. Nevertheless, Sheila assured that they still actively participate in the Nusantara Consortium.
“We confirm that Wings Group continues to be part of the Nusantara Consortium in IKN, which is non-commercial. An example of this commitment is the development of the Botanical Garden,” she stated.
Previously, Djarum Group, owned by conglomerate Budi Hartono, and Wings Group, owned by Wiliam Katuari, had disappeared from the Nusantara Consortium led by Agung Sedayu Sugianto Kusuma, also known as Aguan, for the IKN project within a span of four months.