Financial service sector infrastructure in IKN starting to be constructed

  • 01 Mar 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 - Infrastruktur sektor jasa keuangan di IKN mulai dibangun

1 March 2024

By Heru Febrianto

Jakarta, ID – Indonesian President Joko Widodo (Jokowi) commends the ongoing development of financial service sector infrastructure in Nusantara Capital City. Among the notable institutions and companies participating in the fifth phase of groundbreaking ceremonies are the Financial Services Authority (OJK), Bank Mandiri, Bank Rakyat Indonesia (BRI), and Bank Negara Indonesia (BNI).

According to Jokowi, the groundbreaking ceremonies were conducted as proof of Indonesia’s commitment and readiness to develop IKN as a world-class capital. The implementation of the groundbreaking ceremonies shows the existence of the monetary authority, banks, and payment systems that are ready to support IKN development and continuous economic growth in IKN.

Jokowi made these remarks during the groundbreaking ceremony at BRI International Microfinance Centre in Nusantara Capital City (IKN). BRI’s involvement underscores its commitment to supporting national development, reinforcing economic infrastructure, and affirming its active role as a financial institution contributing to the creation of economic and social values to bolster Indonesia's economic growth.

“I appreciate BRI for facilitating transactions, especially for MSMEs. Hopefully, the spirit can be carried over [to Nusantara],” Jokowi said in his statement in Jakarta on Thursday (29/2/2024).

Meanwhile, IKN Authority Head Bambang Susantono said that the construction was proof of their mutual commitment to developing IKN as a world-class city for all.

“The establishment of BRI International Microfinance Centre exemplifies our commitment to synergise to develop a world-class city that is accessible for all. Subsequently, residents in Nusantara will have convenient access to inclusive banking services,” he stated.

This step also shows the readiness of the monetary authority, banks, and payment systems to support Nusantara development as well as continuous economic growth.

BRI President Director Sunarso emphasised BRI’s commitment to supporting Nusantara development as Indonesia’s economic driver. The construction of BRI International Microfinance Centre in IKN is a form of BRI’s dedication to supporting the micro, small, and medium enterprise (MSME) sector that is Indonesia’s economic backbone.

He also mentioned that the construction BRI International Microfinance Centre invovled an investment of Rp400 billion and a construction period of 1.5 years. Through the construction of the facility, BRI intends to distribute research/studies on various aspects related to the development and empowerment of MSMEs in Indonesia.

“We will use it for exhibitions and seminars, welcoming visits from both domestic and international entities aiming to empower the public through MSMEs,” Sunarso said as quoted by Antara.

Built on a 13,000-square-meter plot, BRI International Microfinance Centre will feature BRI Office Nusantara, BRI Microfinance Gallery, and BRI Community Hub. The eight-story BRI Office Nusantara encompasses the lobby, a priority lounge, office spaces, and a multifunction hall. Meanwhile, BRI Microfinance Gallery functions as a gallery for MSMEs and BRI Community Hub functions as an amphitheatre that can be used for event gatherings and outdoor exhibitions, complete with a rooftop.

Sunarso revealed that BRI, as a bank that focuses on MSMEs, has consistently implemented various efforts to develop and empower MSMEs. By the end of December 2023, BRI's MSME loans amounted to Rp1,069 trillion, constituting 84.4% of BRI's total loans, which reached Rp1,266 trillion in 2023.

Financial industry and banking clusters

On the same day, President Jokowi also attended the groundbreaking ceremony at Bank BNI’s office building in IKN. During the occasion, the President appreciated BNI’s presence in IKN, developing digital banking.

“The area will be a cluster for the financial industry and banks. I am happy that Bank BNI is developing digital banking here,” Jokowi said.

The President said that digital banking was crucial in IKN to encourage the public shifting to digital transformation.

On another occasion, Jokowi has also inaugurated Bank Mandiri’s digital service building in IKN. The President appreciates Bank Mandiri that has commenced the construction of a building for digital services in IKN.

“If the digital ecosystem here has been developed, it will attract digital nomads to live in Nusantara. The city will be different from other cities in the world. It will not be crowded but it will be lively. There will be no pollution as everyone will use electric vehicles and electric public transportation,” he explained.

The Head of State emphasised that Indonesia has a highly potential digital ecosystem, which could be seen from the number of Livin’ by Mandiri users that have reached 23 million.

The President hopes that the development will support the growth of the digital ecosystem and attract digital nomads from all over the world to live in IKN.

Jokowi also talked about the future of Indonesia and the change that will occur after the completion of infrastructure projects in IKN, including toll roads and airports.

President Widodo emphasised that journeys from Balikpapan to IKN would be shortened with the two types of connectivity infrastructure projects.

He also emphasised the significance of IKN's management retaining control, cautioning against pitfalls observed in the development of new capital cities in other countries.

The Head of State emphasised that the forest city and the smart city concepts were the main foundation for IKN development as a sustainable and pollution-free city that is supported by electric public transportation.

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