Sunday, December 10, 2023

Indonesia cooperates with Korean company for IKN housing projects

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Novi Nurmalasari


Mahinda Arkyasa



The Indonesian government will start building state civil apparatus (ASN) residences in the new Nusantara capital city (IKN) in the middle of this year.

Public Works and Housing Minister Basuki Hadimuljono revealed that there would be 47 twelve-story flats. “These flats will be built in mid-2023. They are family residences,” Basuki said on Monday (24/4).

According to Basuki, about 31 of the 47 towers will be designated for ASN, nine towers will be designated for Presidential Guard member residences, four towers are for the Indonesian National Armed Forces (TNI) and the Police, while the remaining three towers will be designated for the State Intelligence Agency (BIN) employees.  

In relation to the development of the flats, the government is planning to build 16,990 residences for ASN and TNI/police members with a total investment of IDR 51.4 trillion: 2,858 residential units are expected to be built using IDR 9.4 trillion of the State budget, 9,295 residences will be developed using the Public-Private Partnership (PPP) scheme with a total budget of IDR 35.8 trillion, while the construction of the remaining 5,110 residences will rely on private investments with an estimated budget of IDR 6.2 trillion.

List of public-private partnerships in building ASN residences

The government has secured several commitments from investors interested in building ASN residences in IKN under public-private partnerships, such as PT Summarecon Agung Tbk (SMRA), Konsorsium Nusantara (RBN CCFG), Korean Land and Housing Corporation (KLHC), a consortium of PT Perintis Triniti Properti Tbk (Triniti Consortium), and PT Nindya Karya (Persero).

Summarecon, RBN CCFG, and KLHC will build 14,500 residences for civil servants at the WP1A-1 Service Center, WP1A-1 Eastern Government, WP1A-1 TNI Housing, and WP1B Phase 1. 

The investment value for the project had reached IDR 41 trillion, from which IDR 1.67 trillion was provided by Summarecon, IDR 30.8 trillion will be provided by RBN CCFG, and IDR 8.65 trillion will be provided by KLHC. The project is targeted to be completed by 2024. 

The Triniti Consortium injected around IDR1.8 trillion and will work on seven flats, while Nindya Karya will spend IDR 1.42 trillion to build eight towers for around 2,490 civil servants.

The government believed that the ASN residential project in IKN will bring in more investments. The government will also attract more residents to IKN’s buffer zone so that investors are interested in developing the area.

Novi Nurmalasari


Mahinda Arkyasa




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