IKN Authority Receives 284 Initial Investment Commitments, Malaysia and China are Attracted

JAKARTA - The Nusantara Capital Authority (OIKN) said it had received 284 Letters of Intent (LoI) or initial commitments to invest in Capital of the Archipelago (IKN Nusantara). A total of 284 LoIs came from 21 countries.

OIKN Deputy for Funding and Investment Agung Wicaksono said that many countries were interested in investing in IKN. There are eight steps to investing in IKN, namely LOI submission, one on one meeting, response letter, feasibility study, LOI review and prioritization, confirmation letter, NDA and Data Request, and Deal Closing.

"From this stage, we have received almost 300 letters of interest, 284 LoIs from around 21 countries, almost half more than domestic, red and white. The neighboring countries of Malaysia, Singapore are quite significant, China and Japan are also significant," said Agung in the Business Forum Talkshow at the Infrastructure Forum and Edutainment Expo monitored online, on Wednesday, September 13.

Agung said that starting next week, groundbreaking will begin for the construction of hotels, hospitals and sports facilities at IKN through private investment.

"I spill that next week the groundbreaking for IKN development will begin with private investment, with funds that are not from the State Budget (APBN). So, we see that foreign investment is coming in," he said.

He added that currently there are 12 priority investment sectors for developing the IKN area, including new renewable energy (EBT) and housing. For the construction of State Civil Apparatus (ASN) housing itself, the government through the PUPR Ministry has started building 47 towers.

However, Agung emphasized that this was not enough, so he needed the help of foreign investors.

"Currently, perhaps the biggest one is housing. From the APBN, the Ministry of Public Works and Housing (PUPR) has built 47 towers, but it is not enough, the role of the private sector must be supported by PPP," he said.

Apart from that, continued Agung, there is one IKN investor who is interested in investing in building road infrastructure which should be built using APBN funds. However, these investors are willing to get incentives, so they can get a cut.

"They are already interested in building roads or buildings. Investors are interested because there is a policy package," he said.