Major Investor Announces Unexpected Update on Its IKN Project

PT Pakuwund Jati Tbk (PWON) has provided the latest update regarding its project in the Nusantara Capital City (IKN). PWON owns the Pakuwon Nusantara superblock project.

PWON has decided to adjust its construction schedule while waiting for a market to form from the process of relocating Civil Servants (ASN) to Indonesia’s new capital.

According to information disclosure released by PWON, management stated that the construction process in the Nusantara Capital City (IKN) is currently in its early stages, involving scaffolding installation and the processing of permits. The number of Civil Servants (ASN) already stationed in IKN will be a determining factor in the company’s development, which is currently undergoing a slight timing adjustment.

“The construction process will be aligned with the stages of the ASN relocation, considering that the Company, in developing property, always pays attention to the potential market formed by the existing number of civil servants,” the management stated.

Furthermore, construction costs are currently recorded to be approximately 30% higher due to the rise in the US Dollar exchange rate, which has impacted material prices. Consequently, the Company is taking a cautious step by waiting to observe further developments.

Meanwhile, the Pakuwon Mall Phase 5 project has reached approximately 30% progress, with a topping-off plan scheduled for early 2027 and a target handover by the end of 2027.

For context, PWON commenced the construction of the Pakuwon Nusantara superblock project through a groundbreaking ceremony led by the President of Indonesia, Joko Widodo, on 1 November 2023.

The project is situated on 7.2 hectares of land within the Government Core Area (KIPP), directly in front of the IKN Zero Point area. Pakuwon Nusantara is designed to be an integrated superblock area encompassing a shopping centre, condominiums, three hotels, and a ballroom. The Company is also partnering with Marriott International.