Investment value in IKN hits Rp51.35 trillion

  • 07 Jun 2024

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 - Nilai investasi di IKN tembus Rp51,35 triliun

By Ichsan Amin

Jakarta, ID – Nusantara Capital City (IKN) Authority (OIKN) announced that, as of the fourth phase of groundbreaking ceremonies held on June 4-5, investments in IKN by various investors have reached Rp51.35 trillion.

OIKN Funding and Investment Deputy Agung Wicaksono said that the progress of infrastructure development in IKN, East Kalimantan, was on track to meet the set targets, reflecting a sense of optimism.

“In this fourth phase of groundbreaking [ceremonies], five business entities in the education and research sector as well as three business entities in the supporting sector have realised a total investment of Rp1.75 trillion,” Agung said in his press statement, quoted on Thursday (6/6/2024).

The first phase of groundbreaking ceremonies at the end of September 2023 recorded an investment value of Rp22.9 trillion, the second phase Rp15.57 trillion, the third phase Rp4.78 trillion, the fourth phase Rp4.26 trillion, the fifth phase Rp2.1 trillion, and the sixth phase Rp1.75 trillion. Therefore, the total investment value in IKN has reached Rp51.35 trillion as of June 2024.

According to him, the success of the sixth phase of groundbreaking ceremonies is due to the ongoing support from investors. The strong interest and commitment of investors have significantly contributed to the progress of infrastructure development in IKN.

“Investment in IKN continues to align with the shared vision for IKN development acceleration programmes. The sixth phase of groundbreaking ceremonies shows that there is ongoing investment in IKN. The interest of investors will be actively pursued to be realised into tangible development,” Agung stated.

In the education and research sector, a groundbreaking ceremony was held for Bina Bangsa School, which includes an international school and a sports centre, with an estimated investment of Rp150 billion on 1.88 hectares of land. Additionally, Universitas Gunadarma, with its international doctorate study programme, will collaborate with several universities from countries such as France, Slovakia, and Sweden. This project has also broken ground with an estimated investment of Rp75 billion on 2.45 hectares of land.

Al-Azhar Summarecon Nusantara Islamic School, with an estimated investment of Rp150 billion, will offer education from elementary through high school. The school will feature a modern, eco-friendly building equipped with sports facilities, laboratories, and a multipurpose hall, all on 2.9 hectares of land.

Additionally, PLN Icon Plus is building its Central Telecommunication Office with an estimated investment of Rp1 trillion on 1.3 hectares of land. Furthermore, BTN is establishing its bank office and has signed a memorandum of understanding for the housing loan (KPR) programme with an estimated investment of Rp86 billion on 9,000 square meters of land.

Meanwhile, Pertamina and Bakrie Group are collaborating to establish a sustainable energy research centre called Nusantara Sustainability Hub in IKN with an estimated investment of Rp197.8 billion on 2.4 hectares of land. In the supporting sector, a groundbreaking ceremony was held for Arena Lifestyle F&B with an estimated investment of Rp100 billion on 8,400 square meters of land.

Operating in the first half of 2025

At the groundbreaking ceremony for Arena Botanika in IKN, President Jokowi highlighted the need for more accommodation facilities that are still lacking in IKN. The President expressed his appreciation for the commencement of the construction of Arena Botanika, which will help meet this need. “So, I very much appreciate the investment from Arena Group in constructing Arena Botanika. Arena Botanika will enhance the facilities in IKN, allowing residents and workers to enjoy delicious culinary options and a comfortable atmosphere without needing to leave the area,” President Jokowi stated.

Arena Group President Director Wiyanto Alamsyah stated that the overall development target was set to begin operations in the first half of 2025 with an investment value of Rp1 billion. Arena Botanika in IKN will feature five restaurant brands, Seribu Rasa, Penang Bistro, Greyhound Café, Maison Tatsuya, and Gyu-Shige Tokyo Yakiniku.

“Arena Botanika, a project by Arena Group established in 2022, aims to offer culinary experiences that prioritise food and service quality at relatively affordable prices for Indonesians. Over the past two decades, Arena Group has evolved into one of Indonesia's leading restaurant operators, developing many of its own brands as well as international franchises,” Wiyanto said.

Arena Botanika in IKN features both indoor and outdoor areas designed to reflect the natural ambiance of Kalimantan. The facilities include private rooms, event spaces, live music, catering services, and meal boxes. Arena Botanika aims to become a culinary destination that supports governmental, social, and economic activities in IKN.

PUPR spends Rp37.4tn

Public Works and Housing (PUPR) Minister Basuki Hadimuljono revealed that, as of 30 May, support for infrastructure in IKN this year has reached Rp37.41 trillion. “As of 30 May 2024, infrastructure support in IKN has reached Rp37.41 trillion,” Basuki said at a work meeting with House of Representatives (DPR) Commission V in Jakarta on Thursday (6/6).

The infrastructure support in IKN totals Rp37.41 trillion, including Rp1.57 trillion allocated for water resources infrastructure. This covers the Sanggai 1 river basin management in the central government core area (KIPP) that is 100% complete and the construction of the retention basin in KIPP that is 96% complete.

Meanwhile, Rp17.56 trillion is allocated for road and bridge infrastructure. This includes the construction of the 5A IKN toll road that is currently 85% complete, the 3B IKN toll road that is 83% complete, and the duplication of Balang Island Short-span Bridge II that is 74% complete.

Furthermore, there is the VVIP airport access road that is 18% complete, the west side of Jalan Sumbu Kebangsaan that is 14% complete and the east side that is 10% complete, as well as feeder transportation in IKN that has reached 73% completion.

“Settlement infrastructure is allocated Rp11.42 trillion for the construction of a water treatment plant (WTP) that is currently 65% complete and scheduled to operate in IKN in July,” he added.

The infrastructure includes Sepaku Package 2 Drinking Water Supply System (SPAM) Transmission Pipeline Network that is 95% complete, the State Palace and its ceremony field that are 69% complete, as well as the Coordinating Ministry Office that is 64% complete. Meanwhile, support for housing infrastructure in IKN amounts to Rp6.86 trillion. “We expect all of them to operate in July this year,” Basuki stated.

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