Investment Interest in the IKN Is 25 Times Larger Than Land Availability

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 New State Capital Development (IKN) received a very positive response from investors. The Nusantara State Capital Authority stated that the offer to invest in the New Capital was 25 times larger than the land provided at the initial stage.

The Head of the Nusantara IKN Authority, Bambang Susantono, explained that in the early stages his party had provided land in the Central Government Core Area (KIPP) covering an area of ​​921 hectares which was ready to be cultivated.

He said, in the market assessment that had been held, the enthusiasm of investors to be involved in the development of the Nusantara IKN was very large.

“[The availability of land] is 25 times more interesting than the interested ones. This means that it is 25 times larger than the available land,” said Bambang at the IKN Market Sounding event, Tuesday (18/10/2022).

Seeing the great interest, Bambang said that his party did not rule out the possibility of preparing land in the KIPP IKN Nusantara area to be developed by investors later.

According to him, the land in IKN Nusantara is still very wide and open to interested investors. For KIPP IKN, the total land that can be developed is 6,671 ha.

“What we are building is only the northern part of 921 ha. So what about the 25 times? Later, okay, we will build infrastructure in [areas] 1B and 1C in the middle so that they can build and enter there. We offer it, still at KIPP,” he said.

As previously reported, The government promises a sweet offer to investors who want to invest in the new capital mega project (IKN). The private sector will get more attractive fiscal and non-fiscal incentives than other developments.

This figure was stated by the Head of the National Capital Authority (IKN) Nusantara Bambang Susantono, in the Pre-Market Sounding event for the State Capital Project, at the Djakarta Theater, Jakarta, Tuesday (18/10/2022). Attended by a series of ministers, and heads of high state institutions to domestic and foreign investors.

“For example, a tax holiday for public infrastructure worth a minimum of Rp 50 billion will be given for 30 years. This is longer than other regions,” said Bambang.

As for the construction of shopping centers, tourist areas, or MICE, you can get a tax holiday facility for 20 years. Then, continued Bambang, investors in certain research and development (R&D) fields will be given a super tax deduction of up to 350%.

“This is the finalization stage, then my duet with Mr. Donny (Vice Head of the IKN Authority) and Kadin. If the PP comes out, it can be implemented immediately,” he explained.