Development progress surpasses target: President forecasts Rp45 trillion investment to flow into IKN soon
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 - Progres pembangunan lebihi target: Presiden proyeksikan investasi Rp45 triliun segera masuk ke IKN
3 November 2023
By: Tri Murti
Jakarta - President Joko Widodo (Jokowi) forecasts that an investment of Rp45 trillion will enter Nusantara Capital City (IKN) in East Kalimantan soon.
“We calculated that, until December 2023, there would be an investment of Rp45 trillion for construction in IKN,” the President said in his official statement after receiving hundreds of company leaders at Kompas 100 CEO Forum in IKN, East Kalimantan on Thursday (2/11/2023).
The Head of State admits that he is happy as the construction of basic infrastructure and government offices has commenced and many investors are interested in participating in IKN development. Overall, the construction progress of the first phase of infrastructure and buildings in IKN has reached 52%, which surpasses the 47% target.
The President also ensures that the construction of the presidential office in IKN is still in line with the target set by the government.
“I have seen the schedule and the target, I think that it is still on target,” he stated.
According to the President, the construction of basic infrastructure and government offices, which include the presidential office, is a part of the first phase of work financed by the state budget (APBN). Next, IKN development will be supported by investment from the private sector.
“For the construction, 20% of government buildings and basic infrastructure will be financed by the APBN. Meanwhile, the remaining 80% will be handed over to the private sector, the business world, private companies,” the President said.
On the other hand, Public Works and Housing (PUPR) Minister Basuki Hadimuljono said that the construction of the presidential office was designed by a local, so the interior will use domestic products to meet the local component rate (TKDN) policy. Using local components is important in the construction of IKN to maintain the national economic cycle.
“Most of the interior will use domestic products. There are some from NTB (West Nusa Tenggara), Cepogo in Boyololi (Central Java), and other regions, but they will be designed to be better,” Minister Basuki said.
Minister Basuki also said that the presidential office was designed by the artist Nyoman Nuarta who also designed the bridge on IKN Toll Road. The building will be fitted by 4,650 blades that will form the Garuda that will be the façade of the presidential office.
Completed in August
On the other hand, Human Settlements Director General of the PUPR Ministry Diana Kusumastuti hopes that the construction of the presidential office in IKN can be completed in August 2024. Until the 52nd week from the start of the construction in November 2022, the progress has reached 52%, which surpasses the 47% target.
“The installation of the Garuda blades is continuously carried out. Hopefully, it can be completed in March 2024,” Diana Kusumastuti said.
The construction of the presidential office is the responsibility of East Kalimantan Regional Settlement Infrastructure Centre (BPPW) and PT PP – Wika Joint Operation. The construction budget is sourced from the APBN worth Rp1.56 trillion.
Previously, President Jokowi accompanied by PUPR Minister Basuki Hadimuljono conducted the groundbreaking of the VVIP airport in IKN, Penajam District, North Penajam Paser Regency, East Kalimantan on Wednesday (1/11/2023). The airport is set to be used in June 2024 and to operate in December 2024.
According to the Head of State, the airport in IKN is crucial as the mobility of people and goods going to IKN is increasing. The airport in IKN is a special airport that will support government activities and connectivity in IKN.
Furthermore, PUPR Minister Basuki Hadimuljono also accompanied President Jokowi to inspect the road network towards IKN. The inspection started from Balikpapan through IKN Access Toll Road towards Balang Island Bridge to Central Government Core Area (KIPP) in IKN.
President Jokowi said that IKN Toll Road that is connected to Balikpapan-Samarinda (Balsam) Toll Road would shorten travel time from Balikpapan to KIPP in IKN, so it will accelerate the mobility of goods and people going to IKN.
“Usually, we go through Baikpapan-Samarinda Toll Road towards Sepaku to go to IKN, which takes 2 hours and 15 minutes. With the toll road, going from Balikpapan to Nusantara that is 57 km away will only take 45 minutes ,” the President said.
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