Foreign Investors Begin Construction in Nusantara, Authority Targets Core Area Completion by 2028

JAKARTA: The development of Nusantara Capital City (IKN) has entered a new phase after Chinese company PT Star Bright International Investment began construction of a Rp1.25 trillion integrated complex in the Central Government Core Area. The project, which marks the first construction by a foreign investor in IKN, will feature apartments, restaurants, retail space, and offices on a 1.5-hectare plot, with completion targeted for the end of 2026. Head of the IKN Authority Basuki Hadimuljono stated that the location holds strategic value as it lies at the heart of the Nusantara government district. “This location is very special. From here, we can see the State Palace and the judicial and legislative complexes currently under construction. The entire area will be completed by 2028,” Basuki said. In addition to the Chinese investment, the IKN Authority is set to receive further investment from South Korea through PT Dian Jaya Indonesia, valued at approximately Rp1.2 trillion. The funds will be used to build apartments and offices in the IKN area. Basuki said the project is targeted to commence this year following a meeting with the investors. PT Star Bright International Investment’s President Director Lu Keming noted that his company is also exploring other investment opportunities in Nusantara. “Our team from China is also interested in investing in the hospitality and tourism sectors,” he said. The IKN Authority reported that the project’s groundbreaking took place on 15 July 2026, attended by business delegations and prospective investors from China and South Korea. The influx of foreign investment adds to the growing private sector activity in IKN. The Authority noted that six private investment projects are currently under construction, including the Star Bright apartment complex, Gunadarma University Nusantara Campus, Abdi Waluyo Hospital, Teras by Plataran, a mixed-use development by PT Fajar Maju Karya Gemilang, and apartments by PT Dian Jaya Indonesia. Additionally, nine private projects have been completed, while 67 business entities have signed cooperation agreements with the IKN Authority. Basuki explained that IKN development is supported by three financing schemes: the state budget, government cooperation with business entities, and private investment. For state budget-funded projects, the IKN Authority manages 40 physical work packages, comprising nine completed in 2025, 15 currently under construction, and 16 in the tender preparation stage. Meanwhile, the Ministry of Public Works is handling 90 work packages, with 78 completed and 12 still under construction, while the Ministry of Housing and Residential Areas manages 12 packages, including one low-income apartment project still in the construction phase. Under the business entity cooperation scheme, there are 13 initiated projects consisting of seven residential sector projects and six road sector projects. In the near future, the scheme will enter the construction phase for 108 landed houses initiated by PT Intiland Development Tbk and eight apartment towers by PT Nindya Karya. Basuki emphasised that the Authority routinely monitors and evaluates progress together with ministries, investors, construction service providers, consultants, and construction management to ensure all work remains on target. He stressed that accelerating development must not compromise work safety or quality. “We must tighten occupational health and safety further. Accidents can happen, but we must minimise them. We work fast, but safely and comfortably,” Basuki said. He added that development adheres to three main pillars: quality, aesthetics, and environmental sustainability.