Tourism and Creative Economy sector participates in increasing investment in IKN

  • 15 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 - Sektor parekraf ikut ramaikan investasi di IKN

15 March 2024

By Leonard AL Cahyoputra and Alfida Rizky Febrianna

Jakarta, ID – Investment in the tourism and creative economy sector in Nusantara Capital City (IKN), North Panajam Paser, East Kalimantan reaches Rp5.3 trillion. It has become part of the total investment in IKN that, as of February 2024, has reached around Rp49.8 trillion-Rp52.2 trillion.

“There are commitments to invest in the tourism and creative economy [sector] in IKN, which we have obtained at the International Tourism Investment Forum (ITIF) 2023. There is Rp5.3 trillion for IKN,” Tourism and Creative Economy Minister Sandiaga Salahuddin Uno said in Jakarta on Thursday (14/3/2024).

He revealed that the investment was contributed by PT Pakuwon Jati Tbk (PWON) totalling Rp5 trillion and by Jambuluwuk Hotels and Resorts totalling Rp300 billion. Both are expected to complete hotel construction in IKN before Indonesia’s 79th Independence Day on 17 August 2024.

“We hope they are committed [to completing the hotels] before August 2024, when our Independence Day will be celebrated. So, we will have five-star hotels in IKN,” he said. Out of East Kalimantan's total gross domestic product (GDP) last year, which amounted to Rp524 trillion, tourism contributed Rp9.14 trillion and creative economy contributed Rp29.43 trillion.

Meanwhile, according to the data collected by Investor Daily, the four groundbreaking ceremonies have attracted investment commitments ranging from Rp49.8 trillion to Rp52.2 trillion in IKN. There are 39 investors involved in these ceremonies, including Agung Sedayu Group, Salim Group, Sinar Mas, Djarum Group, PT Bank Central Asia Tbk, PT Bank Mandiri (Persero) Tbk, and PT Ciputra Development Tbk.

Meanwhile, foreign companies involved in IKN development include McKinsey (USA), Nikken Sekkei (Japan), Aecom (USA), Posco Holdings (South Korea), Hyundai (South Korea), Siemens (Germany), and Thales (France). These companies will be involved from the pre-masterplan preparation, design consultation, to digital identity development.

Pentahelix approach

To attract more investment in the tourism and creative economy sector in IKN, the Tourism and Creative Economy Ministry will offer projects that implement the sustainable tourism concept that are of high quality at the upcoming ITIF 2024 in June. Sandiaga revealed that his agency was preparing a strategy to develop tourism and creative economy in IKN through the pentahelix approach.

“The strategy to strengthen the development of tourism and creative economy [in IKN] in the future is sustainable tourism. It will adopt the pentahelix approach, involving academicians, the media, the central government, regional governments, businesses, and communities,” Sandiaga said.

To strengthen communities, he continued that a programme called “Nemuin Komunitas” would be held to attract the tourism and creative economy community to develop IKN.

His agency will also develop tourism in IKN based on tourism villages and creative villages to realise a sustainable tourism and creative economy sector and ecotourism.

He admits that tourism in IKN is designed differently from other tourism areas. This is in line with the IKN’s concept that is a forest city that prioritises quality and sustainability.

“Ecotourism, such as glamping, indicates that the tourism and creative economy trend in IKN will lean towards the concepts of quality and sustainability,” he stated.

Nusantara Expo

The Tourism and Creative Economy Minister will also introduce and promote IKN to Nusantara tourists to support marketing. “We will assist in the preparation of tourism packages, which will include the Tapak Raja Tourism Village package. Additionally, we will conduct promotions in Bali and Jakarta to encourage travel to Maratua (Maratua-Kakaban-Derawan). Subsequently, we will also organise the Nusantara Expo,” Sandiaga said.

The Tourism and Creative Economy Minister is also promoting IKN at several international tourism exhibitions, such as Internationale Tourismus-Borse Berlin 2024 held 5-7 March in Berli, Arabian Travel Market (ATM) 2024 that will be held 6-9 May 2024 in Dubai, and the World Travel Market event that will be held 5-7 November 2024 in London.

The Tourism and Creative Economy Ministry encourages events to be held in IKN, such as Indonesia’s 79th Independence Day in IKN. “It is a direct order from the President. The event will also be attended by the Vice President, ministers, state officials, and representatives from partner countries,” he stated.

Tourism destinations around IKN will also be prepared to welcome tourists with events that are included in Karisma Event Nusantara (KEN). The Tourism and Creative Economy Ministry will also prepare a special study to map out the potential of MICE in IKN. “We will also support international events in IKN, such as World Walking Day 2024,” the Tourism and Creative Economy Minister stated.

Six activities

Regarding the support from the Ministry of Tourism and Creative Economy for the development of creative products and the digital economy in IKN, the ministry will undertake six activities in 2024. These activities include BEKUP (Baperakraf for Startup), Voice Over Indonesia Academy, the Intellectual Property Class, a Monthly Film Festival, Grip (Go Register your IP!), and Bincang Kreatif (Creative Talk).

The Tourism and Creative Economy Minister affirmed that the government would continue to oversee IKN towards the Golden Indonesia 2045 vision. The Ministry of Tourism and Creative Economy believes that all stakeholders are eager to collaborate swiftly to explore all potential opportunities. Therefore, IKN can become a high-quality, resilient, inclusive, and sustainable destination, fulfilling the dreams of all citizens in Indonesia for a capital city.

In terms of support from the Ministry of Tourism and Creative Economy for the development of quality destinations and infrastructure, the ministry will coordinate efforts to develop regions, tourism villages, creative cities, and creative centres through initiatives focused on tourism villages and creative regencies/cities.

The Ministry of Tourism and Creative Economy is also providing a special allocation fund (DAK) to strengthen priority tourism destinations in 2023 and 2024 with a focus on enhancing the appeal of these destinations.

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