Investors expected to begin participating in IKN development in 2023

Investors expected to begin participating in IKN development in 2023

Public Works and Public Housing Minister Basuki Hadimuljono after attending the Ciliwung Rowing Festival in Jakarta on Sunday (December 4, 2022). (ANTARA/Aji Cakti/uyu)

...we have been working on since August 2022 include road accesses, drinking water facilities, bridges, trash cans, sanitation, flood mitigation facilities, and government offices.
Jakarta (ANTARA) - Public Works and Public Housing (PUPR) Minister Basuki Hadimuljono has expected that domestic and international investors will start investing in the development project of Indonesia’s future capital (IKN), Nusantara, in the second quarter of 2023.

Hence, currently, the PUPR Ministry is preparing for the development of the 1B and 1C areas of the Central Government Core Area (KIPP), he said here on Sunday.

Many investors had sent letters of intent to the ministry and the IKN Authority to invest in the project, he said. 

The PUPR Ministry has commenced the construction of basic infrastructure facilities in the IKN area to draw investors to partake in developing the future city. The establishment of the basic infrastructure used the state budget.

Only around 20 to 30 percent of the infrastructure development in the IKN will be financed by the state budget while the rest must be funded through the Public-Private Partnership (PPP) scheme.

"(The infrastructure projects funded by) the 20-30 percent (of the state budget) that we have been working on since August 2022 include road accesses, drinking water facilities, bridges, trash cans, sanitation, flood mitigation facilities, and government offices," the minister informed.

Earlier, he stated that around 183 Malaysian investors were interested in the IKN development project in East Kalimantan Province to establish housing, hospitals, education, start-ups, and energy facilities.

In addition to Malaysia, those from several other countries, including Japan, Spain, Finland, Brunei Darussalam, and South Korea, had also expressed their interest in participating in the construction of Indonesia’s future capital city both to the PUPR Ministry and IKN Authority. 

Most recently, the IKN Authority had a meeting with the representatives of 21 European Union countries to discuss the cooperation in building the IKN.

"The interest of European Union countries in the construction of IKN will be seriously followed up, thus we can meet the government's target of (having) 80 percent investment (for the development of the future capital city)," Head of IKN Authority Bambang Susantono was quoted as saying in a statement on Saturday (December 3, 2022).

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