IKN 'Flooded' with Investment, From UAE to America
The flow of investment into Indonesia’s new capital Nusantara (IKN) is intensifying. From the Middle East to the United States, funding commitments continue to flow in to support the transformation of Nusantara into a green and digitally-based city of the future.
The Nusantara Capital Authority (OIKN) has recorded that pure private investment realisations have reached 72 trillion rupiah by early 2026, stemming from 57 companies involved in developing the core government area and its surroundings.
OIKN Head Basuki Hadimuljono emphasised that this achievement reflects growing confidence among business players in the national strategic project. “Currently, by early 2026, there are commitments from 57 companies with total pure private investment of 72 trillion rupiah. IKN development is also increasingly improving in terms of public confidence, including in the business sector,” said Basuki in an official statement on Thursday, 26 February 2026.
The surge in investment commitments comes not only from domestic investors but also from global partners. The United States government officially provided a grant worth US$2.49 million, or approximately 40.18 billion rupiah, to support Nusantara’s development. These funds were channelled through the U.S. Trade and Development Agency (USTDA) to finance technical assistance for smart city solutions.
Basuki explained that the grant would be utilised to accelerate Nusantara’s digital transformation through the development of integrated smart infrastructure blueprints ready for investment. “Our vision is clear: Nusantara must become a green, sustainable, and fundamentally intelligent city,” he asserted.
The technical assistance covers the formulation of smart city enterprise architecture, ready-to-use tender documents, and financial investment models based on environmental, social, and governance (ESG) principles.
The project is being executed by the Eficens Systems Inc consortium as the lead technical implementer, comprising Frost & Sullivan, ASECH Indonesia, Mirekel, and PT Searce Technologies Indonesia as a Google Cloud Platform partner.
Subhranshu Sekhar Das, a member of Frost & Sullivan America’s board of directors and project director of the initiative, stated that Nusantara has the opportunity to transcend conventional smart city concepts. “Nusantara has the opportunity to become more than just a smart city; Nusantara can evolve into a cognitive city and has the potential to become a global reference model,” he said.
He added that the use of agentic AI and federated knowledge platforms would shift the paradigm from static digital infrastructure towards adaptive intelligence systems for public services.
Capital from UAE Enters Core Government Zone
Beyond America, substantial commitments have also come from the United Arab Emirates. OIKN has officially secured an investment commitment worth 4 trillion rupiah from Dubai-based construction and real estate company Ayedh Dejem Group. This investment will be allocated for mixed-use area development in Core Government Area (KIPP) 1A.
Sudiro Roi Santoso, OIKN’s Deputy for Financing and Investment, revealed that the investment value would be realised through planning, licensing, and contractor tender stages. “The estimated investment value of approximately 4 trillion rupiah will begin with detailed planning, followed by the licensing process and contractor tender process lasting approximately one and a half years from the agreement signing date,” he explained.
The agreement was signed directly in Dubai between OIKN and Ayedh Dejem Group Chairman Sheikh Ayedh Dejem on 23 January 2026, as a follow-up to the Non-Disclosure Agreement agreed upon in May 2025. The UAE-based investor will develop a 9.7-hectare plot in the premium KIPP 1A area, directly adjacent to Plaza Bhinneka Tunggal Ika.
The planned project includes the development of an office complex, commercial area, shopping mall, and religious facilities including a mosque. Physical construction is targeted to commence in mid-2027 with an estimated completion within five years.
Sheikh Ayedh Dejem expressed optimism regarding Indonesia’s economic prospects as the basis for expanding his business to Nusantara. “Given our position in Dubai, which ranks among the world’s 20 largest economies, we highly anticipate significant growth in real estate development in Nusantara,” he said.
Urban Ecosystem Begins to Form
On the domestic side, OIKN has also recently signed three new Cooperation Agreements (PKS) with PT Panca Karya Sentosa, PT Maxi Nusantara Raya, and PT Borneo Berkah Abadi. These investments include the development of shopping centres, culinary areas, and sports facilities concentrated in development areas 1A and 1C of the Core Government Zone.
Basuki emphasised that the development of commercial and social facilities is designed to meet the daily needs of the Civil Service Apparatus (ASN) and people residing in Nusantara. OIKN targets the formation of an independent, functional, and economically vibrant urban ecosystem from the early stages of capital relocation.
According to him, the increase in investor confidence is inseparable from regulatory certainty, including the issuance of Presidential Regulation No. 79 of 2024. Additionally, the direct presence of the President and Vice President in the project area strengthens perceptions of development certainty and sustainability.
To maintain investment momentum, the IKN Authority has promised licensing ease and intensive support for investors so that signed projects can quickly enter the construction phase.
“Going forward, the development of commercial, social, and other supporting facilities will continue to be promoted to foster the growth of an urban area ecosystem. This step is expected to generate various economic activities while strengthening the appeal of Nusantara as the centre of a new civilisation in Indonesia,” concluded Basuki.
With intense commitments flowing from the Arab states to America, and continued growth in domestic private sector participation, Nusantara continues to gain traction as a destination for substantial investment.