Bahlil Lahadalia, the Minister of Investment, said that private investors will conduct a groundbreaking project for the State Capital (IKN) in September 2023, with a total fund of up to IDR 40 trillion.
In the first phase, the construction of basic infrastructure for the capital city has started using the state revenue and expenditure budget or APBN.
“They have started to enter the groundbreaking, this September,” said Bahlil.
President Joko ‘Jokowi’ Widodo is targeting to hold a ceremony for the Birthday (HUT) of the Republic of Indonesia (RI) on August 17, 2023 at IKN.
“The first stage is that infrastructure development is carried out by the State Revenue and Expenditure Budget, and the Regional Revenue and Expenditure Budget, now it is partially completed.” Bahlil said.
He said that a number of infrastructures had begun to be built on the basis of Foreign Investment (PMA) to Domestic Investment (PMDN).
A number of infrastructure such as stadiums and sports arenas comply with Federation Internationale de Football Association (FIFA) standards.
“After this we started to build hospitals, education and housing in the IKN, and it has started running and the city is very good,” he added.
On the other hand, the IKN project will continue even though it will replace the president in 2024, and until 2045. The total cost of building this IKN is estimated at IDR 466 trillion, of which less than 20% comes from the APBN. Meanwhile, 80% comes from private and government investment.