Investment Opportunities in IKN are huge due to both domestic and foreign interested investors participating in the program upon its sounding market. The US representative is one of the investors interested in the Nusantara Capital City (IKN) development project in their recent visit to the site.
Previously, delegations from two other countries, namely Korea and Japan, also expressed their interest in the project. Investment opportunities on the above project are promising, so many investors want to take part and commit to working hand-in-hand with the government.
So far, there are about 167 investors who are officially listed as potential investors, but only five of those investors have received a Letter to proceed. Here are the details.
IKN Development
Nusantara Capital City (IKN) is an important project of the Indonesian government due to the expectation of making it a sustainable city. However, this future capital city is also designated as a symbol of national identity. Thus, the government must carefully design and plan the development to achieve that goal.
The government said that it will provide 20% of the development funds. Thus, an IKN investment opportunity exists for investors to help fund the other 80%s.
The market sounding held on 18 October 2022 brings many opportunities because many interested domestic and foreign investors are interested. Some of the investors have even provided the government with their Letter of Intent so they officially want to take part in the project.
The head of the Nusantara Capital Authority (OIKN), Bambang Susantono, stated that IKN development is a huge project. Thus it requires massive investment. However, this project also needs a solid collaboration between the government and the investors to reach the targeted goal optimally.
Investors for IKN Development
167 investors have sent their LoI (Letter of Intent) to participate in the IKN development. Many countries, such as the US, Swiss, Korea, Japan, Malaysia, Singapore, and more, sent their representatives.
They all want to participate in the IKN development to help the Indonesian government achieve its desired new capital city.
However, the government has handed an LTP (Letter to Proceed) only to five of them. Here are the investors with LTP from the Indonesian government:
- The Nusantara Consortium (RBN and CCFG Corp)
- PT Summarecon Agung Tbk (SMRA)
- PT Nindya Karya (Persero)
- The Consortium of PT Perintis Triniti Properti Tbk (TRIN)
- Korean Land and Development
IKN projects have opened a wide Investment opportunity in Indonesia for both domestic and foreign investors due to its massive development.
According to the Minister of Public Works and Housing, Basuki Hadimuljono, the physical progress is significant because it has reached 25%. He is very positive that they can start relocating the city in August 2024 due to the current progress.
The government issued Government Regulation 12 of 2023 to facilitate the IKN investment. This policy is important because it provides opportunities, certainty as well as the contribution of the investors in accelerating the IKN development.
The policy wants to make the future capital city become the government’s center and the economic activity center. Thus, developing related infrastructure and economic instruments is important to achieve such a goal.
Conclusions
Nusantara Capital City (IKN) development offers a huge opportunity to many IKN investors due to its massive project to make the city the future capital.
The project aims to make IKN not only the government’s center but also the center of economics. The government also wants this city to be a center of innovation to attract technology companies.
Thus, Investment Opportunities in IKN need serious management and collaboration from the government and the investor for the best outcome.
