President: Investors will be interested in the atmosphere of IKN
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 - Presiden: Investor akan tertarik dengan suasana IKN
24 February 2023
Jakarta - President Joko Widodo (Jokowi) believes that investors will be interested in investing in Nusantara Capital City (IKN) in East Kalimantan that offers a different atmosphere. Especially, the area outside the Central Government Core Area (KIPP) that will offer a different atmosphere and experience.
“[The attractiveness] is very strong. The atmosphere is different. The core area is a government area. However, outside of that, people will see the atmosphere. There is a difference, and that is what we are selling. Experience and ambiance,” President Jokowi sad when he visited the KIPP in IKN in East Kalimantan on Thursday (23/02/2023).
IKN is constructed by the Indonesian government with the green city, smart city, and modern concept. The government is also constructing a nursery facility in Mentawir that can produce 20 million plant seeds per year, which is expected to support the eco-friendly concept of IKN.
For connectivity in the early stage, the government is constructing a toll road from Balikpapan to the KIPP in IKN that will cut travel time to 30 minutes.
Furthermore, President Jokowi affirmed that investors do not need to question the prospect of the new capital city. He said that the physical construction of IKN has commenced, and it is progressing excellently.
Jokowi believes that, on 17 August 2024, the government will be able to hold the Independence Day ceremony at the Presidential Palace in IKN.
“Seeing the landscape and other [aspects]. I have talked with the designer, the field executor, the field supervisor, and the field manager, they are optimistic about it. Inshallah (God willing), it will be completed,” he said as quoted by Antara.
According to Jokowi, if physical construction in IKN has been completed, the relocation of government human resources will be carried out. Hence, the government will also construct social and environmental facilities and infrastructure, such as educational institutions, shopping centres, entertainment centres, and healthcare facilities in IKN.
“When it is completed, it will be inhabited immediately. Every ministry [buildings]. However, not all staff will be relocated. So, it will be populated. Hence, restaurants, schools, kindergartens, elementary schools, middle schools, high schools, universities, hospitals, clinics, entertainment [centres], malls, and other [facilities] are required,” he said.
Toll road
Meanwhile, previously, the President was targeting the toll road to the KIPP in IKN to be completed in late 2024. Currently, the IKN toll road project has three segments, namely segment 3A Karangjoang-KKT Kariangau spanning 13.4 km, segment 3B KKT Kariangau-Tempadung Interchange spanning 7.32 km, and segment 5A Tempadung Interchange-Pulau Balang Bridge spanning 6.67 km.
“So, the toll road, inshallah, will be completed in late 2024,” the President said in his official statement after visiting the construction of the toll road to the KIPP in IKN in East Kalimantan on Wednesday (22/02/2023).
Furthermore, the President said that, later, the toll road infrastructure that will be connected to Balikpapan-Samarinda (Balsam) toll road will shorten travel time from Balikpapan to the KIPP in IKN from around 2 hours to 30 minutes.
“The toll road from Balikpapan to the KIPP in IKN spans around 50 km, which will take around 30 minutes of travel from Balikpapan. We can see that it is on progress. We hope that it will be the first infrastructure constructed related to IKN’s development,” the President said.
