"Four foreign direct investments (FDIs) from foreign companies will enter IKN," the minister remarked after attending the first plenary cabinet meeting at IKN on Monday.
Regarding the country of origin, the minister noted that Japan and South Korea plan to invest in IKN to build property.
Currently, the development at IKN is still focusing on the property and public facilities sectors, he added.
Regarding investment from Dubai, the United Arab Emirates, Lahadalia said he had to check the data.
"I will check the data later. From what I read earlier, I saw that Japan and South Korea are showing interest," he stated.
He noted that foreign investment would enter IKN in the second investment cluster.
At the cabinet meeting, Lahadalia affirmed that President Joko Widodo discussed the development of investment in IKN.
In the first cluster, the investment received for IKN development reached Rp56.2 trillion (US$3.4 billion), outside the budget from the state budget.
"Meanwhile, the certainty of the HGU (right to cultivate) land certificate would only take 11 days," he added.
Earlier, the authority of IKN Nusantara (OIKN) stated that several foreign investors from Japan to South Korea were keen on entering the property sector at IKN.
OIKN Deputy for Funding and Investment Agung Wicaksono remarked that 475 letters of intent (LOIs) were received. After an evaluation by his side, he found that only 263 LOIs showed true interest in investing at IKN.
The development of IKN Nusantara mostly relies on private investment.
Based on Law Number 3 of 2022 concerning the National Capital, the government is synergizing funding sourced from the State Budget and other legitimate sources in accordance with the provisions of laws and regulations to support the preparation, development, and relocation, as well as the implementation of special governance for IKN.
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Translator: Putu Indah S, Resinta Sulistiyandari
Editor: Azis Kurmala
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