IKN Development Funding Sources Revealed: State Budget Rp 48 T, Private Sector Rp 74 T
The Head of the Nusantara Capital City Authority (OIKN), Basuki Hadimuljono, has revealed the funding sources for the development of the Nusantara area. He stated that IKN funding does not rely solely on the State Revenue and Expenditure Budget (APBN), but also comes from Public-Private Partnership (KPBU) schemes, private investment, and grants.
Development funding from the state budget itself is recorded at Rp 48.8 trillion for the 2025-2029 period across three development batches.
Firstly, it is projected for the development of connectivity to support investment, such as improving road access of 12.1 km in the Central Government Core Area (KIPP) 1B and 1C, the arrangement of the Sepaku area, and the development of green open spaces (RTH).
Secondly, the state budget allocation is also used to build office areas for legislative and judicial institutions as well as other supporting infrastructure. On average, the development progress of these areas has reached 13.6%.
Thirdly, the construction of state vertical housing and its supporting infrastructure. At this stage, development includes housing for legislative and judicial institution personnel and civil servants (ASN) as well as other supporting infrastructure such as roads and area arrangement.
“The APBN for completing the judiciary and legislature, we have calculated at that time with Planning and Infrastructure, it requires Rp 48.8 trillion for buildings, for the area, and for its connectivity,” explained Basuki when met by journalists at KIPP IKN, East Kalimantan, Monday (17/8/2026).
Furthermore, for development under the KPBU scheme, the project value is recorded at Rp 134.22 trillion, which is divided for building housing as well as roads and Multi-Utility Tunnel (MUT). For housing development, there are seven initiating companies such as PT Intiland Development Tbk which is building 109 landed houses and 41 apartment towers.
Then for funding from private investment, the investment value is recorded at Rp 74.54 trillion. Basuki detailed that the funds are allocated for building hotels, hospitals, shopping malls, restaurants, sports facilities, and recreation.
These private investors include a property company from Dubai, PT Dejem Nusantara Development, a company from South Korea, PT Dian Jaya Indonesia, and a company from China, PT Starbright International Investment. Basuki said that the three property companies have already begun work.
“Dejem is building a mall worth Rp 4 trillion, 10 hectares, the land has been paid off. 8 hectares for the mall, 2 hectares for their waqf, they want to build a mosque. God willing, starting from 2027 they will be ready to begin work. Then Starbright from China, there are 4 residential and commercial building towers, they have started forming their workforce worth Rp 1.25 trillion. The third from Korea, Dian Jaya, is a commercial area, there are 25 towers, the design is very futuristic,” he explained.
The following are details of funding sources and development projects from the KPBU scheme and private investment:
KPBU Rp 134.22 T
Housing Initiators
Intiland (109 landed houses, 41 apartment towers)
Nindya (8 apartment towers)
Guangxi - DMT (11 apartment towers)
Samsung C&T (21 apartment towers)
PJ-IC (20 apartment towers)
IJM-CHEC (20 apartment towers)
PT Hutama Karya (10 apartment towers)
Road & MUT Initiators
PT Sumber Mitra Jaya (17.67 km)
CSCEC (31.36 km)
PT Adhi Karya (15.48 km)
Nindya - Brantas (21.67 km)
CHEC - IJM (26.9 km)
Guangxi - DMT (21.04 km)
Private Investment Rp 74.54 trillion
PT Dejem Nusantara Development
PT Dian Jaya Indonesia
PT Starbright International Investment
PT Panca Karya Sentosa
PT Fajar Maju Karya Gemilang
PT Plataran Boga Rasa
PT Haupstadt Indonesia Borneo
PT Electronic City Indonesia
and others