Major Investor Announces Unexpected Update on Its IKN Project

PT Pakuwon Jati Tbk (PWON) has provided an update on its project in the Nusantara Capital City (IKN). PWON is developing the Pakuwon Nusantara superblock. The company has decided to adjust the construction schedule while waiting for a market to form from the relocation of civil servants (ASN) to Indonesia’s new capital. In an information disclosure cited on Saturday (27/6/2026), management stated that the construction process at IKN is currently in the initial stages, specifically piling work and permit processing. The number of civil servants stationed in IKN will be a determining factor for the development undertaken by the company, which is currently experiencing a slight timing adjustment. “The construction process will be aligned with the stages of ASN relocation, considering that the company, in developing property, always pays attention to the market potential formed by the number of existing ASN,” management explained. Additionally, current construction costs are recorded as being approximately 30% higher due to the increase in the US dollar exchange rate, which has impacted material prices. Therefore, the company is taking a cautious approach by waiting and observing developments first. The Pakuwon Mall Phase 5 project has currently reached approximately 30% progress, with a topping-off planned for early 2027 and a handover target at the end of 2027. PWON commenced construction of the Pakuwon Nusantara superblock project with a groundbreaking ceremony led by then-President Joko Widodo on 1 November 2023. The project stands on 7.2 hectares of land in the Central Government Core Area (KIPP), directly in front of the IKN Zero Point area. Pakuwon Nusantara is designed as an integrated superblock encompassing a shopping centre, condominiums, three hotels, and a ballroom. The company is also partnering with Marriott International.