Jakarta (ANTARA) - The Nusantara Capital City Authority (OIKN) revealed that private business actors' investment in the entertainment sector in Indonesia's new capital city Nusantara (IKN) has reached Rp20 trillion (US$1.3 billion).

"Private business actors have invested Rp20 trillion in the entertainment sector, which includes hotels, green open public spaces, and others," OIKN's Deputy for Funding and Investment Agung Wicaksono after attending the ASEAN Investment Forum (AIF) Day 2 in Jakarta on Sunday.

The AIF serves as a side event for the 43rd summit of the Association of Southeast Asian Nations (ASEAN), scheduled to take place on September 5-7 in Jakarta, under Indonesia's ASEAN chairmanship this year.

Wicaksono noted that in the 2020-2024 National Mid-Term Development Plan (RPJMN), the government stipulates that IKN will be developed by using funding from various sources.

In detail, the government plans to build the new capital city by using Rp90.4 trillion (US$5.9 billion) from the State Budget, Rp123.2 trillion (US$8 billion) from business actors, and Rp252.5 trillion (US$16.5 billion) from public-private partnership scheme.

He informed that most private business actors, dominated by domestic investors, invested in the development of IKN's 1A zone that covers the Presidential Palace and several ministerial offices among others

"The 1A zone covers the Central Government Core Area (KIPP). We have allocated 6,000 hectares of land for that area," he pointed out.

He further said that his side has received as many as 270 letters of intent from domestic and foreign investors looking to partake in the development of the new capital city in East Kalimantan Province.

"Indonesian companies account for more than half of the number, followed by ASEAN member countries, like Singapore and Malaysia, as well as Japan and South Korea," he said.

Two companies from Malaysia have stated their commitment to participating in developing 20 towers of flats in IKN, he said, adding that they are currently undertaking feasibility studies.

"Regarding (investors from) Singapore, they are mostly interested in renewable energy and waste management," he added.

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Translator: Kuntum K, Tegar Nurfitra
Editor: Rahmad Nasution
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