OIKN Receives 305 Investment Initial Commitments, A Total Of 172 Comes From Indonesian Investors

IKN illustration (Photo: Doc. intermediate)

The Capital Authority of the Archipelago (OIKN) said that it had received as many as 305 Letter of Intent (LoI) or the initial commitment to invest in IKN Nusantara.

Deputy for Funding and Investment of the Archipelago Capital Authority (OIKN) Agung Wicaksono said, of the 305 LoIs, 172 of them came from Indonesian investors

"Most of them are Indonesian investors. Of the 305 LoIs, 172 are red and white investors. So, it can be seen how fast domestic investors are, from submitted to an agreement," Agung said in an online media briefing, Monday, November 20.

Agung said the investment stage, which started from the submission of LoI to the agreement reached by domestic investors, was faster than foreign investors.

The details of the 305 LoI consist of 172 LoI, Singapore 27 LoI, Japan 25 LoI, Malaysia 19 LoI, China 19 LoI, South Korea nine LoI, United States (US) seven LoI, Finland three LoI, Spain three LoI, United Arab Emirates (UAE) two LoI, Thailand two LoI, Germany two LoI, and others 18 LoI.

Furthermore, Agung said that there are eight processes that investors need to go through before investing in IKN, namely the submission of LoI, review and assessment of the LoI priority scale sector, 1-on-1 meetings, submission of confirmation letters, response letters from OIKN to investors, confidentiality agreements and non-disclosure agreement (NDA) data and requested data, feasibility studies, and agreements.

He said that domestic investors were quick in responding to these stages.

"So, it can be seen how the speed of domestic investors and also how the stages of investment are carried out. I said that domestic investors are more set, so in processing, evaluating, the term is risk and profit, then they also make decisions until they reach the agreement," he said.

Meanwhile, Agung said, foreign investors are also needed because IKN will become a world city, so a large budget is needed from investors with various high standards of technology and services.

"So, if a lot of questions about foreign investment are needed or not? Obviously, on the way, it will be necessary, because we want to be a world city for all for investors from various parts of the world with various technology standards, service standards," he said.

Most recently, OIKN has collaborated with four US information technology companies to build a smart city in IKN.