IKN Nusantara Investment Realisation Reaches IDR 47.5 Trillion

The Nusantara Capital City Authority (OIKN) has reported that investment realisation flowing into the development of the Nusantara Capital City (IKN) has reached IDR 47.5 trillion to date. OIKN Head Bambang Susantono stated that this figure covers the period from the start of IKN’s construction up to the fourth phase, which was marked by a groundbreaking ceremony in January 2024. “Throughout 2023, the investment realisation achieved was IDR 41.4 trillion. Investment has increased by IDR 6.1 trillion to date,” said Bambang. The investment realisation came from private investors, amounting to more than IDR 39.5 trillion, and from State-Owned Enterprises (BUMN) at around IDR 8 trillion.

OIKN is targeting public investment in the Nusantara City development project of around IDR 100 trillion by the end of 2024. This investment can be sourced from both the private sector and BUMN. Bambang emphasised that the presence of BUMN and private investors who have previously been involved in the development of Nusantara City can create a positive atmosphere, which is expected to attract interest from new investors. Despite the election period, OIKN remains optimistic about an increase in the number of investors willing to commit long-term capital to IKN’s development this year. “We are confident that investment in Nusantara City will continue to proceed,” he said.

President Joko Widodo (Jokowi) has mentioned that the funds for the development of Nusantara City, located partly in North Penajam Paser Regency and Kutai Kartanegara Regency, East Kalimantan Province, are estimated to reach around IDR 466 trillion. This amount is estimated with approximately 19-20% sourced from the State Revenue and Expenditure Budget (APBN), while the remainder, around 80%, is to be obtained through investment. In the latest development, OIKN noted that 15 companies from Finland have expressed interest in investing. These companies come from various sectors, including energy, electric vehicles, and telecommunications with a focus on 5G and 6G networks. Finland’s Minister of Economic Affairs and Employment, Wille Rydman, said the companies would soon directly review the IKN area.