167 Letter of Interest Received for Investment in IKN Nusantara

the construction process of the segment 2 Sepaku ring road in the location of the National Capital City (IKN) Nusantara, North Penajam Paser Regency, East Kalimantan, Tuesday (4/10/2022). (ANTARA PHOTOS - Rivan Awal Lingga)

The IKN Authority reported that it has received 167 Letters of Interest (LoI) for investment in IKN Nusantara. Of the total, 50% were domestic and the other 50% were from foreign investors.

Bambang Susantono, the Head of IKN Nusantara Authority, stated that they were currently in the process of selecting which letters of interest were suitable and serious in their application to participate in the construction of IKN.

However, out of the 167 LoIs received, Bambang emphasized that they still needed to undergo a selection process, as investors still need to conduct feasibility studies to determine whether to invest in IKN.

Meanwhile, he ensured that other infrastructure development activities were still progressing according to the implementation schedule.

Last Thursday (30/3/2023), two new national investors had received Letters to Proceed or Project Initiative Approval Letters (SIPP) from the IKN Authority (OIKN) to build Civil Servant Housing (ASN) in Nusantara.

The consortium of PT Perintis Triniti Properti Tbk (Triniti Consortium) and PT Nindya Karya invested Rp1.8 trillion and Rp1.42 trillion respectively to construct seven and eight towers.

Both Triniti Consortium and Nindya have received Letters to Proceed from the IKN Authority to build ASN housing in partnership with three previous investors. Their business scheme is the Government and Business Partnership (KPBU).

According to Bambang, the demand for ASN housing is immense, as it needs to accommodate 16,990 ASN by 2024, and the number will continue to increase every year.

Therefore, investment opportunities in ASN housing are still wide open. Furthermore, IKN is a large project that supports net-zero emissions and will only develop 25% of the Nusantara area, while 75% will be a green area consisting of protected forests (65%) and green areas for food production (10%).

On Saturday (1/4), the OIKN and the Ministry of Public Works and Housing accompanied the Japanese business association to visit the development of the Nusantara State Capital (IKN).

Agung Wicaksono, Deputy for Funding and Investment of the IKN, stated that this was a positive signal and a response to the market sounding conducted by the Indonesian government to Japan in late February.

Agung emphasized that, as often mentioned by Bambang Susantono, seeing is believing. By directly observing the progress of the construction in the field, the Japanese investor delegation could see the development continuing.

Furthermore, the Prime Minister of Japan’s Advisor, Hiroto Izumi, wrote on the testimonial sheet, “great job,” which Agung considered as an essential testimony to build market confidence. He expressed optimism that this Japanese visit would be followed up in reality.