In 2023, Nusantara Capital City Achieves Remarkable Investment Milestone of IDR 41.4 Trillion

IKN development progress (photo: Zahwa Madjid - Katadata)

The government’s efforts to develop the Nusantara Capital City (IKN) are making significant strides. In the latest update from the Nusantara Capital City Authority (OIKN), there is promising news concerning investment realization. As of the end of 2023, the committed investments in the Nusantara Capital City have reached an impressive IDR 41.4 trillion.

Bambang Susantono, the Head of OIKN, highlighted that these investment commitments are a result of three groundbreaking ceremonies that commenced in September 2023.

According to Bambang, “The substantial increase in investment realization reflects the trust investors place in the project, signaling that the development of IKN is progressing according to plan. IKN is not just a new city; it symbolizes Indonesia’s journey towards a new and sustainable era,” he explained in an official statement on Thursday (21/12/2023).

On December 20, 2023, President Joko Widodo (Jokowi) conducted several groundbreaking ceremonies in IKN. Among them were the commencement of the construction of the Nusantara Capital City General Hospital (RSUP IKN) and the initiation of the Nusantara Superblock development. The Nusantara Superblock attracted a substantial investment of IDR 3 trillion.

Expressing his satisfaction, President Jokowi stated, “I am very pleased because there are investors from East Kalimantan, investors from Balikpapan who are actively contributing to the development of the Nusantara Capital City, and their investment is significant at IDR 3 trillion.”

In the initial groundbreaking phase of IKN on September 21-22, 2023, the total investment reached IDR 23 trillion, involving 10 companies in the Nusantara Consortium. The consortium includes Agung Sedayu Group (Lead Consortium), Salim Group, Sinar Mas, Pulau Intan, Djarum, BCA Group, Wings Group, Adaro Group, Barito Pacific, Mulia Group, and Astra Group.

Following this, OIKN conducted the second groundbreaking on November 1-2, 2023, with an investment value of IDR 13.1 trillion. This phase involved key players such as the Ministry of Transportation of the Republic of Indonesia, Mayapada Hospital, Pakuwon Group, JIS, Hermina, Bank Indonesia, BPJS Ketenagakerjaan, and PLN Indonesia. The second phase also marked the official inauguration of the revitalized SDN 020 Sepaku, dedicated by local residents. Anticipating a continued positive trend in IKN investments next year, the government has provided various incentives and compensations.

To attract more corporations to invest in IKN, the government has introduced measures outlined in Government Regulation No. 12 of 2023 concerning Business Licensing, Business Facilitation, and Investment Facilities for Business Actors in the Nusantara Capital City. These measures include a 0% corporate income tax (CIT) rate for 10 years, 0% value-added tax (VAT) on imports, 0% luxury goods sales tax (PPnBM), 0% import duties, and a 0% land and building tax (PBB) for 10 years.