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 - Pemerintah bangun sejumlah proyek parekraf di IKN
11 January 2024
Jakarta, ID – Tourism and Creative Economy Minister Sandiaga Salahuddin Uno explained that President Jokowi has conducted groundbreaking for several projects in the tourism and creative economy sector that mostly consist of accommodations in Nusantara Capital City (IKN). The projects include the construction of Nusantara Hotel by Nusantara Consortium worth Rp20 trillion on 21 September 2023. The project is set to operate in August 2024.
Besides that, several hotels, resorts, and malls have also commenced construction in 2023. “Hopefully, the hotels can be occupied in August 2024,” he said at The Weekly Brief with Sandi Uno that was held in a hybrid manner in Jakarta on Wednesday (10/1/2024).
Sandiaga explained that there were still business opportunities in the realm of glamping destinations. The government is also currently developing tourism villages around IKN. These areas will serve as alternative housing options with a primary focus on preserving local customs and wisdom.
He said that, during his work visits to Dubai and Jeddah, his agency offered investment opportunities in more than 10 special economic zones (SEZs) in the tourism and creative economy sector, 5 super priority tourism destinations, and IKN.
According to Sandi, on these occasions, many have expressed their interest in investing in Indonesia, particularly in IKN. However, he admits that his agency is still in the process of calculating the potential investment value to be committed.
“I think, in the early stage of the road show, there will be around 2 million [people] in IKN in the next few years. So, a massive investment will be required,” he stated.
The Tourism and Creative Economy Minister reckoned that IKN development would need a large investment. The government will only work on 15%-20% of the project at most. Meanwhile, the rest will be worked on in cooperation with private companies. “So, we are inviting large investors to look at the business opportunities in IKN,” he said.
During the event, Sandiaga also revealed that a billionaire from Oman wanted to develop property projects in IKN. The interest to invest was stated when he conducted the work visit to Dubai. “At one of the meetings, an investor stated their interest. They are a billionaire from Kerala in India, but they hold an Oman citizenship and developed their business in Dubai. They want to develop property projects in Indonesia, especially in IKN,” he stated.
IKN Authority Social, Culture, and Community Empowerment Deputy Alimuddin said that IKN’s current overall physical construction progress has reached around 70%. In the tourism and creative economy sector, there are currently five 5-star hotels being constructed, including Nusantara Hotel with progress reaching 30%. There are also 4-star hotels that are being constructed simultaneously. “We have provided hospitality training for 100 people,” he stated.
