The Indonesian government has confirmed that foreign investment will start flowing into the new capital city, Nusantara (IKN), this month.
“Two new investors from Singapore, Sembcorp Industries Ltd and Raffles Education Center, have expressed their interest in investing in IKN,” Minister of Investment Rosan Perkasa Roeslani said on Tuesday, September 3, 2024.
During Rosan’s visit to Singapore at the end of August 2024, both companies outlined their plans to contribute to the development of IKN.
Sembcorp plans to build a 5-megawatt solar power plant (PLTS) in the first phase, with an investment value of approximately US$60 million (Rp960 billion). The solar power plant is expected to be operational by November 2024.
Rosan emphasized the importance of this project in attracting more foreign investment, especially as investors are increasingly focusing on clean energy and environmental sustainability.
Additionally, Raffles Education Center intends to invest in the education sector in IKN. The Indonesian government has designated specific development areas for foreign investors, while other development zones are prioritized for local investors.
Rosan also noted that both companies have been operating in Indonesia for a long time, with Sembcorp Energy Indonesia active since 2001 and Raffles Education opening its Jakarta branch in 2006.
However, there has been no further clarification on whether the investments will be made directly by the parent companies in Singapore or through their subsidiaries in Indonesia.
To date, investments totaling Rp56.2 trillion have been secured for the development of IKN, with 55 investors having already conducted groundbreaking ceremonies.
These investments span various sectors, including education, healthcare, retail, logistics, hospitality, energy, transportation, offices, banking, housing, green spaces, media, and technology.
In addition to Sembcorp and Raffles Education, other international companies have shown interest in investing in IKN.
Among them is Samsung Group from South Korea, which plans to invest in the property sector under a Public-Private Partnership (PPP) scheme.
Emaar Properties from the United Arab Emirates and Sojitz Corporation from Japan are also interested in investing in IKN’s property sector.
The strong interest in investing in IKN is driven by promising development prospects and the significant potential of IKN as Indonesia’s new economic hub.
The government hopes that this influx of foreign investment will accelerate development and support the success of IKN as Indonesia’s new capital city.
