OIKN Says Foreign Investors Start Directly Investing In IKN In 2024

IKN illustration (Photo: Doc. intermediate)

JAKARTA - The Nusantara Capital Authority (OIKN) targets that next year there will be foreign investors who will invest directly. This means that investors no longer enter IKN through cooperation with domestic companies.

OIKN Deputy for Funding and Investment Agung Wicaksono said that currently there are three foreign investors who have entered the feasibility study phase. The three are CITIC Construction (China), Maxim (Malaysia), and IJM (Malaysia).

"In 2024 we will see if Chinese or Malaysian investors are direct first with a cooperation scheme between the government and business entities (KPBU)," he said in an online media briefing quoted on Saturday, December 16.

Agung said that the three countries would build housing for state civil servants (ASN), respectively. CITIC plans to build 60 towers, Maxim 10 towers, and IJM 20 ASN residential towers.

Even so, Agung was still reluctant to reveal the value of these projects. However, he said, if they have completed a feasibility study, his party will conduct an evaluation. "After that, the tender. But the initiators will have special privileges," he said.

Furthermore, Agung did not deny that many foreign investors were actually included in several IKN Nusantara projects, but were working with domestic companies. He gave an example of Hotel Nusantara partnering with Swissotel from Switzerland.

Then, the Indonesian Football Association (PSSI) training center in collaboration with the FIFA world football federation.

Next, there is the Mayapada Hospital project in collaboration with the Apollo Hospital from India.

Based on OIKN data, Agung said, his party has now received around 328 letters of interest or letter of intent (LoI). Of the total, about 55 percent are domestic investors. Meanwhile, about 45 percent are foreign investors.

"The total is 328 LoI, 328 if asked most of them are still domestic (investors), but there are 45 percent (investors) of foreigners who are interested," said Agung.

The foreign investors consist of Japan, China, Malaysia, South Korea, the United States, and Europe.