OIKN Leaks Two Foreign Investors Will Immediately Work On Residential Projects At IKN

Illustration. (Photo: Doc. Antara)

The Capital Archipelago Authority (OIKN) provides the latest developments regarding foreign investors in the IKN project. In its report, a consortium from China and Malaysia in the near future is known to be starting working on residential projects at IKN.

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

"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.

Agung said that currently the progress of investment plans from foreign investors from the two countries is going through the evaluation stage of the feasibility study at the Ministry of Finance (Kemenkeu).

When asked about the potential investment from the two foreign investors, Agung was reluctant to provide further information.

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

According to Agung, the project from foreign investors for the residential sector cannot be implemented at the sixth stage of groundbreaking in May 2024.

"However, we are optimistic that the investment plan will start construction at IKN this year," he added.

As previously reported, the Archipelago Capital Authority (OIKN) reported that there are currently 357 Letter of Intent (LoI) or initial commitments to invest in IKN.

OIKN Deputy for Funding and Investment Agung Wicaksono said, of this total, around 42 percent came from foreign companies.

"Of the 357 LoIs that have entered, there are around 150 LoIs who are foreign companies," said Agung Wicaksono in Jakarta, Monday, February 19.

Agung said the most investment interest came from Singapore, Malaysia, Japan, China, and Korea. The sectors with the most interest are housing, technology, and energy.

"There are around 8 companies (LoI occupancy) that are already in the process now, have completed a feasibility study or FS is being evaluated for us later in the selection, tender. If these companies are realized later, some are from China, Malaysia, maybe at least the value is IDR 45 trillion from the capital expenditure value (Capex) for them to build," he said.