Supported By Foreign Projects, IKN Investment Targeted To Reach IDR 100 Trillion Throughout 2024

Head of the Capital Archipelago Authority (OIKN) Bambang Susantono said that his party is optimistic that the investment target in IKN can reach Rp100 trillion throughout 2024.

Bambang said that the investment was mainly supported by foreign capital injections through the Government Cooperation with Business Entity (PPP) scheme.

"One of these will start with foreign private (investors). So, hopefully by the end of the year it can reach Rp100 trillion. Because this is quite large for investment with the KPBU pattern," he said at the DPR RI Building, Jakarta, quoted on Tuesday, March 19. He added that currently the foreign investment process that will enter IKN through the KPBU scheme is entering the finalization stage at the Ministry of Finance (Kemenkeu).

When asked about the schedule for the entry of foreign investment to IKN, Bambang was reluctant to provide further information. However, he confirmed that his groundbreaking activities would not take place in May.

"Right, we haven't entered (gorunundbreaking) in this sixth stage. Maybe after that, yes, when the groundbreaking is done, we will see for ourselves," he said.

As previously reported, OIKN Deputy for Funding and Investment Agung Wicaksono said, until now there have been at least 3 foreign initiators who are ready to inject their capital in IKN, especially in the residential sector.

Agung revealed that the three initiators came from Malaysia and China, one of which would join a consortium with local Indonesian companies.

"We can say that there are at least two foreign investments that are very real. First, from the Chinese consortium which will partner with the Nusantara consortium and two others from Malaysia," Agung said when met after the Market Sounding at the food stall Hotel. Midplaza, Jakarta, Thursday, March 7.

Even so, Bambang did not want to provide further information about the investment potential of the two foreign investors.

"For the potential value, I specifically cannot say because it depends on how much the tender will be. However, later out of the 7 initiators, IDR 50 trillion of capital expenditure (Capex) can be realized, of which three out of 7 initiators are foreign," he added.