Indonesia Plans Roadshow to Attract Investment for Nusantara Project

Detailed Plan for New Capital City Revealed: Will Be Covered by Forest (photo: Detik)

Indonesia is currently in the process of developing its new capital city, Ibu Kota Baru Nusantara (IKN). In an effort to maintain the continuity of the development, the government plans to hold a roadshow in several countries, starting from China to South Korea to offer investment schemes in IKN from May 2023 onwards.

Vice Chairman of the IKN Authority, Dhony Rahajoe, said that investment in IKN through the Government and Business Entity Cooperation (KBPU) scheme has attracted interest from both domestic and foreign investors.

He stated that the investment process is still ongoing, including from the Nusantara consortium, which involves local investors with investors from China and South Korea. To continue to encourage investment in IKN, the government plans to hold a roadshow in May 2023.

“In May, we will conduct a roadshow to offer this KBPU to foreign investors,” he said at a press conference after a limited meeting with President Joko Widodo on Wednesday, April 12, 2023.

Dhony added that in addition to pure investment supported by Presidential Regulations (PP) regarding investment and PP regarding ease of doing business, licensing, and investment facilities, investors have the opportunity to invest their capital through the KBPU scheme.

“We will open KBPU where in the feasibility study, we will look at a rational cost of fund that we can use as a benchmark to continue the programs carried out with investors through KBPU,” he said.

In previous reports, the IKN Authority reported that it had received 167 letters of interest (LoI) to invest in IKN.

The head of the IKN Authority, Nusantara Bambang Susantono, said that of the total 167 LoIs received, 50% are from domestic investors and the remaining 50% are from foreign investors.

“We have received quite a lot of letters of interest, there are 167 from around 16 countries. 50% are domestic and the other 50% are foreign. We are in the process of selecting which ones are suitable and serious in applying to participate in building IKN,” said Bambang.

From the 167 LoIs received, Bambang said that his team still needs to screen them, and investors must still conduct a feasibility study to be able to invest their capital in IKN.

Overall, the development of Ibu Kota Baru Indonesia is an important project for Indonesia’s future, and the government’s efforts to attract investment from both domestic and foreign investors will likely help accelerate the project’s progress towards completion.