National strategic project: Accelerating IKN a priority
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Bisnis Indonesia - Proyek strategis nasional: Percepatan IKN jadi prioritas
3 May 2023
By: Muhammad Ridwan
Jakarta - The Public Works and Housing (PUPR) Ministry is accelerating the construction of Nusantara Capital City (IKN) in East Kalimantan to attract private investors to the national strategic project.
PUPR Ministry Spokesperson Endra S. Atmadijaja said that the government was focusing to complete their portion to convince investors to invest in IKN.
“It is about how we [the government] enter. It must be straightened out. The government will provide subsidies first. If the government is serious, they [the private sector] will support it,” he said on Tuesday (2/5).
As construction in the field has progressed, he added that it would be a reference for investors regarding the seriousness of the government in developing IKN.
Currently, he added that the IKN development progress has reached 27% of the overall progress.
“Lastly, the Minister reported to the President about 1 or 2 weeks ago before Eid that the progress was around 27%,” he said.
He added that, in capital city construction, initiative from the government was natural. However, they must attract the interest of investors.
Based on the data from IKN Authority, 182 investors have submitted a letter of intent (LoI) to invest in IKN.
The number of LoIs increased after the government and IKN Authority had hunted for investors at the international industrial exhibition, Hannover Messe 2023, in Germany.
IKN Authority Funding and Investment Deputy Agung Wicaksono said that the increase in LoIs reflected the high interest of global investors to invest in IKN development.
“As of 10 April 2023, we recorded that there are 182 LoIs from business players from 16 countries,” he explained.
The PUPR Ministry is also holding a tender for the construction of flats for State Civil Apparatus (ASN), the Presidential Security Detail (Paspampres), and the Indonesian National Police (Polri) in IKN worth Rp9.1 trillion.
Next Article: PUPR: IKN Nusantara development progress reaches 27%
