To build IKN, govt involves a team of experts from China
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Bangun IKN, pemerintah libatkan tim pakar dari Tiongkok
11 April 2023
Jakarta - The Indonesian government will collaborate with a team of experts from Shenzhen, China to build Nusantara Capital City (IKN). This synergy is expected to develop IKN.
“Indonesia is expecting support from China, specifically from the team of experts from Shenzhen, to design, manage, and construct the supporting clusters in IKN,” Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said at the Coordinating Ministry for Maritime Affairs and Investment Office in Jakarta on Monday (10/4/2023).
He said that the government has met with the special representatives from United Arab Emirates President Mohammed bin Zayed (MBZ) who will join with the team from Shenzen and the IKN team. In IKN, there are nine clusters that are constructed jointly by the government and the private sector. “Last night, I met the special representatives from President MBZ from Abu Dhabi. They are delighted to collaborate with the team from Shenzhen. So, later, we will see the combination of teams from Indonesia, China, and Shenzhen as there are nine clusters in the new capital city. Later, we will see which clusters they want,” Luhut said.
The investment requirement to build IKN until 2024 reaches around Rp466 trillion to Rp486 trillion. The amount is divided into the government’s investment from the state budget (APBN) that reaches around Rp88.54 trillion to Rp92.34 trillion (19%) and investments from business players that reach around Rp377.46 trillion to Rp393.66 trillion (81%).
The IKN team has also received many interests from Chinese companies. Luhut is pushing the National Development and Reform Commission (NDRC) to provide a recommendation on which company can collaborate in IKN. “The IKN team has received many interests from Chinese companies. We hope the NDRC can recommend suitable SOEs (state-owned enterprises) and private companies to work in IKN,” he stated.
