Abu Dhabi, China Tycoons Storm Nusantara Capital, Vying to Build

The development of Nusantara Capital City (IKN) does not rely solely on the state budget (APBN). The government is also depending on private investment to accelerate economic development in the future national capital region. “There are three development schemes at IKN. First from the APBN, second from direct private investment, and also from KPBU or PPP projects,” said Head of the Nusantara Capital City Authority (IKN) Basuki Hadimuljono at the DPR on Thursday. This scheme ensures that development does not entirely burden state finances. The government is using the APBN for the construction of government facilities, while the private sector is being encouraged to develop commercial areas and facilities to support economic activity. Basuki revealed that to date, the contracted value of private investment has reached Rp73 trillion. Investor interest in the IKN project continues to grow, with a number of domestic and foreign companies already entering the construction phase. “For private investment, up to now, the agreed or contracted amount is 73 trillion,” he stated. One of the incoming investors is from Abu Dhabi, amounting to Rp10 trillion. The funds disbursed are being used for the construction of an office complex, a shopping centre, and religious facilities. In addition, there is an investor from China, Starbright, which has started building apartments and office areas. The government views these projects as a signal that IKN development is beginning to move from the planning stage towards physical realisation. “Then for China, there is Starbright for apartment and office construction. It has now started,” said Basuki. Investors from South Korea are also beginning to realise their projects in the IKN area. Beyond that, a number of national business players are entering with hotel projects, restaurants, and tourist destinations. The presence of commercial facilities is considered key to accelerating the formation of a new growth centre in East Kalimantan. “Then also restaurants like Teras Kota, then Rumah Makan Sederhana, then Taman Safari will also start to be worked on this year. That totals Rp73 trillion,” explained Basuki.