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Investor Daily - Tiga negara dukung pembangunan Ibu Kota Nusantara
17 January 2024,
By Ichsan Amin
Jakarta, ID – Investors from three countries, namely Malaysia, Brunei Darussalam, and Saudi Arabia, will collaborate to support the development of Nusantara Capital City (IKN).
IKN Authority Funding and Investment Deputy Agung Wicaksono said that the investors from these three countries were experienced private entities forming a consortium known as Bandar Seri Begawan Consortium.
“Bandar Seri Begawan Consortium is led by the brother of the Sultan of Brunei. So, it is an international consortium that has stated its interest in constructing housing,” Agung said in a media briefing in Jakarta on Tuesday (16/1/2024).
The arrival of the investors from Brunei and Malaysia is thanks to the work visits of President Joko Widodo (Jokowi) some time ago to several ASEAN countries.
Besides Brunei Darussalam, the other investor is from Saudi Arabia that is experienced in building futuristic cities in Egypt. The investor will support IKN development through housing projects.
“For Saudi Arabia, they are experienced in constructing new cities in Egypt that are known to be futuristic. They are interested in constructing landed houses and apartments in IKN,” he revealed.
The total investment value from the three countries has been specified in a letter of interest (LoI). The value is estimated to reach around Rp4.5 trillion to Rp7 trillion.
“The exact value, whether Rp4.5 trillion or Rp7 trillion, will be established through feasibility studies. Should these studies confirm the viability of the projects, they will proceed to execution,” he stated.
On Wednesday (17/1), President Jokowi was scheduled to to participate in the groundbreaking ceremony for the fourth phase of the Central Government Core Area (KIPP). The event encompassed the inauguration of various state-owned enterprise (SOE) projects, including a project for PT Pos Indonesia and RRI’s studio.
In the private sector, notable inaugurations comprised of a warehousing area, resort hotels, and projects of information and technology companies. Groundbreaking ceremonies were also conducted for state institution offices constructed by the PUPR Ministry. These offices encompass the IKN Authority Office, the State Mosque, the Memorial Park, and the Deposit Insurance Corporation (LPS) Office.
“So, there are [projects of] SOEs, private companies in the form of hotels and resorts, a warehouse, and [projects of] IT [companies]. Meanwhile, [the projects of] state institutions include the State Mosque that has been constructed by the PUPR Ministry,” he explained.
Currently, there are 345 LOIs that have been submitted. In detail, 60% of these LOIs came from domestic investors and 40% came from foreign investors. Some of the largest commitments have been made by investors from Singapore, Japan, Malaysia, China, and Saudi Arabia.
“We will continue to observe based on the feasibility studies. If they are viable, we will hold tenders,” he stated.
Groundbreaking as a form of commitment
Meanwhile, Special Staff of the President Coordinator Ari Dwipayana emphasised that the monthly groundbreaking of infrastructure projects in IKN signified a commitment from both investors and government institutions to materialise the development of the new capital.
“Because we want to ensure what have been built. The groundreaking is a form of commitment from the investors and government institutions to developing IKN,” Ari Dwipayana said as quoted by Antara.
Ari said that, this week, President Jokowi was scheduled to attend the groundbreaking of the fourth phase of infrastructure projects in IKN. Previously, Jokowi has consistently participated in the groundbreaking ceremonies of the first three phases of infrastructure projects in IKN.
According to him, the government is continuously constructing supporting infrastructure in IKN, such as the airport, Balikpapan-IKN toll road, dams, health facilities, housing, schools, and others.
So, IKN will be ready to be lived when the government starts to relocate civil servants to the new capital city. “So, everything will be confirmed when we relocate to IKN. The ecosystem that supports the relocation is already available,” he explained.
According to the data from IKN Authority, the investment commitment amounted to less than Rp41.4 trillion during the initial three phases of groundbreaking.
The government has commenced IKN development to be completed in 2045. The government is also targeting to hold the first Independence Day ceremony in IKN in August 2024.
