The Nusantara Capital Authority has predicted that the development of the Nusantara ndonesia Capital City (IKN) over the next 10 years will not require financing from the State Budget (APBN).
Agung Wicaksono, Deputy Director for Finance and Investment of the IKN Authority, said that independent financing this aligns with the full operationalization of IKN as targeted by the government.
“Our prediction is that investor interest in the Nusantara Capital City continues to rise,” Agung said on Sunday, March 3, 2024.
Agung revealed that within a span of 6 months, investments in the IKN amounted to approximately Rp50 trillion (US$3.2 billion), covering the period from September 2023 to February 2024. “And we predict that the investment flowing into the Indonesia Capital City throughout this year [2024] will be around Rp55 trillion,” he added. Thus, the estimated investment achievement exceeds the IKN Authority’s target of approximately Rp100 trillion by the end of this year.
If the investment achievements over the six-month period are accumulated over the 10-year period as envisioned for the full operationalization of the Indonesia Capital City according to President Jokowi’s target, then investments will reach approximately Rp1,000 trillion. “If this assumption or prediction is accurate and correct, then there will be no need for national budget funds for the development of the Indonesia Capital City,” Agung stated.
Agung further disclosed that China and Malaysia are set to invest in the property sector in the Indonesia Capital City this year. The total investment value expected from these two countries in the Indonesia Capital City is around Rp40 trillion.
Additionally, the Ciputra Group’s investment will also be realized this year, focusing on developing a self-sufficient city complete with various features such as housing, commercial areas, golf courses, and cultural villages in the Indonesia Capital City. However, the exact investment value is yet to be determined. The property development projects from the two foreign investors and the Ciputra Group are still undergoing feasibility study evaluations, with tenders expected to commence around April 2024, according to Agung.
It was previously reported that the IKN Authority aimed for investments parked in the Nusantara Capital City throughout 2024 to reach Rp100 trillion. Head of the IKN Authority, Bambang Susantono, said that they are optimistic about achieving this target through various means, including actively conducting market surveys or market sounding.
