Head of the Nusantara Capital Authority (OIKN), Bambang Susantono, made the remarks in a press release issued by the OIKN here on Thursday.
“The development of Nusantara capital is a large project that requires a large investment and collaboration between the government and business actors. This city is being built from scratch on green land, which provides a unique opportunity to create a sustainable and efficient urban environment,” Susantono said.
In terms of funding, the Indonesian government is committed to providing 20 percent of the city's development funds from the state budget, while the remaining 80 percent will be funded by investors.
According to Susantono, the investment potential in Nusantara is huge, with opportunities in various sectors, including housing, transportation, energy, and tourism.
The city is also expected to become a center of innovation, with the government planning to establish research and development centers and attract technology companies to the city.
To attract investment to Nusantara, the government has issued Government Regulation No. 12 of 2023 concerning business licensing, business ease, and investment facilities for business actors in Nusantara.
The goal of this regulation, said Susantono, is to provide greater certainty, opportunities, and participation to business actors to accelerate the development of the new capital.
The regulation envisages Nusantara not only as a center of government, but also as an Indonesia-centric economic activity center, he added.
Related news: Gov't preparing draft regulation to support investment in Nusantara
The latest data from OIKN shows that 167 investors have sent letters of intent to participate in the development of Nusantara.
Among them, 5 investors have received a letter to proceed (LTP) from the government to build housing for civil servants: PT. Summarecon Agung Tbk (SMRA), the Nusantara Consortium (CCFG Corp and RBN), Korean Land and Development, and the Consortium of PT Perintis Triniti Properti Tbk. (TRIN), and PT Nindya Karya (Persero).
In addition, the high interest of friendly countries to invest in Nusantara can be seen from the delegations from Korea, Japan, and Switzerland who have visited Nusantara to observe the progress of development and explore investment opportunities.
The Japanese delegation included businesspersons who are active in the construction and housing sector. In Indonesia, they observed the progress of development and evaluated investment potential.
Meanwhile, Minister of Public Works and Public Housing, Basuki Hadimuljono, said that the physical progress of the new capital’s development has reached 25 percent.
Hadimuljono added that he is optimistic that the relocation of the new capital city can begin by August 2024.
Related news: Ministry invites Japanese investors to take part in IKN development
According to data from the ministry, several infrastructure facilities have been built, such as arterial roads, toll roads, dams, waste management, wastewater management, drinking water management, and also a landmark, Sumbu Kebangsaan.
Regarding the construction of government offices and the presidential palace, the progress has reached 5.8 percent and 8 percent, respectively.
Some parts of IKN, such as the logistics road and Embung Mentawir, have been completed 100 percent.
Moreover, Sepaku Semoi Dam and the Sepaku River intake in Penajam Paser Utara Regency, East Kalimantan, are targeted to start impounding in June 2023.
Sepaku Semoi Dam will be able to supply 2,500 liters per second of raw water, of which 2 thousand liters per second will be allocated to Ibu Kota Nusantara and the remaining 500 liters per second to Balikpapan.
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Reporter: Bayu Prasetyo
Editor: Yuni Arisandy Sinaga
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