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 - Jokowi minta penyediaan lahan untuk investasi di IKN dipercepat
14 March 2024
By Heru Febrianto
Jakarta, ID – Indonesian President Joko Widodo (Jokowi) has urged for expedited land provision for investments in Nusantara Capital City (IKN) in East Kalimantan. Jokowi made this statement following numerous complaints from investors regarding the slow pace of investment in IKN.
This was stated by Public Works and Housing (PUPR) Minister Basuki Hadimuljono following an internal meeting led by President Jokowi on IKN development at the Presidential Palace in Jakarta.
“Upon the President's approval, the Investment Minister proposed selling the lands to investors, with pricing determined by the IKN Authority,” Basuki said as quoted by Antara on Wednesday (13/3/2024).
PUPR Minister Basuki stated that President Jokowi issued the directive following numerous complaints from investors about the slow pace of investment in IKN. Consequently, the President ordered the status of lands for investors to be set with a sale and purchase system.
However, the President emphasises that the expedited land provision process for investments in IKN complies with all regulations. “That was what he said; work quickly without violating any regulation. He will directly monitor the process in the future,” Basuki said.
President Jokowi also mandated the establishment of a special desk for investor complaints, along with assigning specific individuals as persons in charge (PICs) to facilitate effective communication with investors. “So, will each PIC handle one investor, five, or even 10 investors? This ensures that investors can communicate effectively with the designated IKN official serving as the PIC,” he explained.
During the event, Basuki also reassured that the water supply in IKN would be secure before Indonesian President Jokowi commences work in the country's new capital city.
Earlier, President Jokowi announced his intention to relocate his office to IKN once the airport and the toll road become operational in July 2024. “The important aspects are not only the airport and the toll road, but also water. So, we will plan water to enter [IKN] in June, before the toll and the airport operate in July,” he stated.
With the completion of these basic infrastructure, Basuki is optimistic about the government’s plan to celebrate Indonesia’s Independence Day in IKN. “On 17 August, inshallah (God willing), the ceremony will be held there, and the President will work there as well,” Basuki said.
The PUPR Ministry through the IKN Infrastructure Development Implementation Task Force will construct two water treatment plants (WTPs) to supply drinking water to IKN.
The first WTP is the Sepaku River Intake that has a capacity of 350 litres per second that is funded by the State Budget (APBN). Meanwhile, the second WTP is the WTP installed in Sepaku Semoi Dam with a capacity of 300-350 litres per second funded by the grant from South Korea.
The PUPR Ministry is targeting the construction of the Sepaku River Intake WTP to be completed first. “Hence, with the two WTPs, Nusantara will receive a drinking water supply of around 600-700 litres per second,” Infrastructure Development Implementation Task Force Chair Danis Sumadilaga said in November last year.
Based on Presidential Regulation Number 63 Year 2022 on Details of Nusantara Capital City Master Plan, the WTPs are meant to provide and process drinking water.
The principle applied in developing the WTPs is to optimise their functionality alongside the operation and maintenance of the drinking water supply system (SPAM).
Subsequently, the connection between the WTPs will be ensured to maintain continuous drinking water production, even if one of the WTPs is non-operational.
The fundamental principle of water infrastructure in IKN is to manage water resources effectively to provide access to drinking water, support economic and environmental needs, protect water resources from pollution, ensure secure and sustainable sanitation, and mitigate flood risks, all within a single integrated water management system.
Investment value nearly Rp50 trillion
IKN Authority reported that the value of the five groundbreaking ceremonies presided over by President Joko Widodo amounted to Rp49.6 trillion from 32 institutions. "There have been five groundbreaking ceremonies, valued at nearly Rp50 trillion, precisely Rp49.6 trillion. Around 32 institutions have conducted groundbreaking ceremonies," IKN Authority Head Bambang Susantono said when he provided a press statement at the Presidential Palace.
Bambang emphasized the need for infrastructure development initiated with the five groundbreaking ceremonies to progress and be realised promptly.
He stated that the infrastructure, buildings, institutional offices, and public facilities will establish an ecosystem within the Central Government Core Area (KIPP) of IKN and serve as a model for future development in the region.
“We see that the investments need to be realised as soon as possible on the field, so the ecosystem can be established,” Bambang said.
Besides the Presidential Palace, ministerial/institutional offices, public facilities, and supporting infrastructure constructed by the PUPR Ministry will make IKN a liveable and loveable city.
Meanwhile, the sixth groundbreaking ceremony in IKN in May in 2024 is set to encompass educational projects. “A sixth groundbreaking ceremony is set to be conducted in May. The Indonesian President have conducted groundbreaking ceremonies five times in IKN for investment projects. The sixth groundbreaking ceremony that is set to be conducted in May will encompass educational projects,” IKN Authority Funding and Investment Deputy Agung Wicaksono said.
Agung explained that IKN was designed to be a comprehensive city catering to work, residence, recreation, and education. Consequently, the ecosystem within IKN will offer a complete environment for working, living, engaging in recreational activities, and pursuing education.
Compat city
PUPR Minister Basuki Hadimuljono mentioned that the size of ministerial residences in IKN was smaller compared to those in the Widya Chandra Complex in South Jakarta, where ministers currently reside.
“For me, it is smaller. I am the one living in it. It is smaller than the one in Widya Chandra,” Basuki.
Basuki explained that he was one of the ministers who live in the official housing in the Widya Chandra Complex in Kebayoran Baru, South Jakarta.
