New Capital City: Project and Value

President of the Republic of Indonesia, Joko Widodo, led the groundbreaking ceremony for the 6th phase of the construction of the Nusantara Capital City (IKN) on April 4-5, 2024. The groundbreaking for phase 6 is part of the development of IKN that began in September 2022. In this event, the president was accompanied by the Minister of Public Works and Public Housing, who is also the Acting Head of the IKN Authority, Basuki Hadimuljono, the Deputy Minister of Agrarian and Spatial Planning, who is also the Acting Deputy Head of the IKN Authority, Raja Juli Antoni, the Curator of IKN Ridwan Kamil, as well as other ministers.

Successively, groundbreaking ceremonies have been conducted for phase 1 (September 21-22, 2023), phase 2 (November 1-3, 2023), phase 3 (December 20-21, 2023), phase 4 (January 17, 2024), phase 5 (February 29 – March 1, 2024), and most recently phase 6 (June 4-5, 2024). The Deputy for Financing and Investment of the IKN Authority, Agung Wicaksono, mentioned that the accumulated investment value up to the execution of the groundbreaking for phase 6 has reached Rp 52 trillion.

Before reaching phase 6, a total of 23 local pioneer investors had already conducted groundbreaking ceremonies in IKN with non-State Budget (Non-APBN: Non Anggaran Pendapatan dan Belanja Negara) investments totaling Rp 41.4 trillion. The phase 1 groundbreaking, with an investment value of Rp 23.1 trillion, was carried out to initiate development projects such as the Nusantara Hotel, Vasanta Hotel, Abdi Waluyo Hospital, the PSSI Football Training Center, government office buildings, and botanical gardens.

The phase 2 groundbreaking, valued at Rp 12.5 trillion, was marked by the laying of the first stone for the Nusantara IKN Airport project by the Ministry of Transportation of the Republic of Indonesia, Mayapada Hospital Nusantara, Pakuwon Nusantara, Nusantara Intercultural School, Hermina Hospital, Bank Indonesia Office, BPJS Employment Office, and a 50MW solar power plant by PT PLN (Persero). The relocation of the public elementary school (SDN 020 Sepaku) with a new concept and design of land provided by the village about 400 meters from the original location.

Then, the phase 3 groundbreaking recorded an investment of Rp 4.78 trillion. Phase 3 focused on several sectors: the Central Public Hospital (RSUP: Rumah Sakit Umum Pusat) of Nusantara, Green Space which includes greening projects, including reforestation of the Sumbu Kebangsaan land and former mining land; the complementary sector of the Sumbu Kebangsaan ecosystem with involved fields including energy and electric-based public transportation; and the Non-APBN State Institutions sector funded from sources other than APBN.

The phase 4 groundbreaking successfully recorded an investment with a nominal value of Rp 4.26 trillion, involving a total of 11 development projects. This groundbreaking marked the start of the construction process for the City Hall and the Office of the Nusantara Capital City Authority (OIKN: Otorita Ibu Kota Nusantara), the Deposit Insurance Corporation (LPS: Lembaga Penjamin Simpanan) office, Memorial Park, warehouses, and the National Mosque. There are 2 State-Owned Enterprises (BUMN: Badan Usaha Milik Negara) involved in Phase 4, which are RRI and Pos Indonesia. RRI is building studios and will broadcast from IKN, while Pos Indonesia will build a Nusantara logistics hub in IKN.

The phase 5 groundbreaking resulted in an investment of Rp 49.6 trillion, with a shift in focus towards the financial, telecommunications, public services, and smart city sectors. In the banking sector, there are 4 banking companies that conducted groundbreaking ceremonies, namely Bank Mandiri, BRI, BNI, and Bank Kaltimtara. Furthermore, in the telecommunications sector, Telkom Indonesia will build the Telkom Smart Office and TVRI will also build a mini studio in Nusantara. In addition to focusing on the financial and telecommunications sectors, BPJS Health in phase 5 will build its service office for the future residents of IKN.

Lastly, in Phase 6, President Jokowi conducted several groundbreakings with a primary focus on the education sector. There are 5 educational and research business entities, and 3 supporting business entities participating in the project, with a total realized investment of Rp 1.75 trillion.

In Phase 6, groundbreaking ceremonies were conducted for the education and research sector: 1) Bina Bangsa School with an estimated investment of Rp 150 billion; 2) Gunadarma University with an estimated investment of Rp 75 billion; 3) Al-Azhar Islamic School Summarecon Nusantara with an estimated investment of Rp 150 billion; 4) A collaboration between Pertamina and the Bakrie Group with an estimated investment of Rp 197.8 billion; and 5) Botanical Garden by the Nusantara Consortium with an investment estimate yet to be determined.

Furthermore, in the supporting sector, Phase 6 groundbreaking ceremonies were conducted for the Lifestyle Food & Beverage Arena with an estimated investment of Rp 100 billion; PLN Icon Plus with an investment estimate of Rp 1 trillion; and BTN, which is establishing a banking office and a housing loan program with an estimated investment of Rp 86 billion.

In contrast to the previous groundbreaking ceremonies, President Jokowi was no longer accompanied by Bambang Susantono as the Head of the IKN Authority and Dhony Rahajoe as the Deputy Head of the IKN Authority, as both have officially resigned from their positions. In Phase 6, President Jokowi was accompanied by Minister of Public Works and Public Housing Basuki Hadimuljono, who was appointed as the Acting Head of the IKN Authority, and Deputy Minister of Agrarian Affairs/Wakil Kepala BPN Raja Juli Antoni as the Acting Deputy Head of the IKN Authority.

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