IKN Nusantara: Political capital city project resumes
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.
Bisnis Indonesia - IKN Nusantara: Proyek ibu kota politik bergulir lagi
25 February 2025
By Alifian Asmaaysi
The Nusantara Capital City (IKN) project in East Kalimantan has resumed following the signing of cooperation agreements between five companies and the Nusantara Capital City Authority (OIKN).
OIKN Deputy for Funding and Investment Agung Wicaksono highlighted that these companies have committed a total investment of Rp1.25 trillion.
The agreements will be signed by PT Balikpapan Ready Mix Nusantara, PT Berkah Bersinar Abadi, PT Brantas Abipraya (Persero), PT Puri Persada Lampung, and Universitas Negeri Nusantara.
Agung explained that these investment commitments are crucial for completing the urban ecosystem in IKN, particularly within the Central Government Core Area (KIPP), which is projected to function as a political city by 2028.
On Monday (24/2), during the IKN PPP Market Sounding event in Jakarta, he announced, “We will witness five more national businesses signing cooperation agreements for land, with an estimated investment value of Rp1.25 trillion.”
Agung revealed that the investment from the five companies will support a mixed-use development, which will include hotels, offices, and universities.
OIKN Head Basuki Hadimuljono stated that investment opportunities through the public-private partnership (PPP) scheme for IKN development amount to Rp130 trillion.
He explained that the PPP is focused on supporting the development of housing, roads, and the multi-utility tunnel (MUT) system in IKN.
Basuki stated, “Investments using the PPP scheme for housing reach around Rp60 trillion, while investments for roads and the MUT system amount to around Rp70 trillion.”
Agung added that entities interested in investing will receive a concession period of approximately ten to twelve years, in accordance with the loan utilised by the entity.
The repayment will follow two schemes: a user charge, which will be levied on facility users, and government support in the form of an availability payment.
He emphasised, “So, the investment return will follow two schemes: user charge and availability payment.”
The PPP investment wave of Rp60.93 trillion is expected to support the development of both vertical and landed housing. Investment commitments include PT Intiland Development Tbk (DILD), which will build 109 units of landed houses and 41 apartment towers with an investment value of Rp33 trillion; PT Nindya Karya, which will construct eight apartment towers for Rp2.6 trillion; and PT Perintis Triniti Properti Tbk (TRIN). Additionally, Truba Group will build eight apartment towers for Rp2.5 trillion, and IJM-CHEC from Malaysia will construct 20 apartment towers with an investment of Rp13.4 trillion.
Next, there are investment commitments from Maxim Global Berhad from Malaysia, which will construct ten apartment towers with an investment value of Rp4.4 trillion, and PT Ciputra Nusantara, which aims to construct ten apartment towers and 20 landed housing units with an investment value expected to exceed Rp5 trillion.
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