Infrastructure IKN becomes attraction of investment in Indonesia. IKN is known as Nusantara. The Indonesian government is presenting Nusantara designs to people in the country and abroad to invite them to invest in IKN Nusantara. Before the G20 Summit (KTT) took place, member countries had planned to invest in IKN Nusantara, for example, the United Arab Emirates (UAE) for USD 20 billion and Hong Kong investors, after meeting with the President of the Republic of Indonesia, Joko Widodo at the leaders’ meeting the Asia-Pacific Economic Cooperation (APEC) economy.
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During the G20 Summit, IKN Nusantara was also discussed by member countries, one of which was in the High-Level Experts and Leaders Panel on Water and Disasters (HELP) Special Event forum. South Korea plans to participate in building a clean water system at IKN Nusantara with initial construction plans to start in 2024. Investments from various countries are expected to support the development of various sectors, such as infrastructure, transportation, housing, office buildings, public facilities, and other sectors.
The government is open and very supportive of the role of the private sector in the transfer and construction of the new IKN Nusantara according to plan. The plans are as follows:
| Phase | Period | |
| I | : | 2022 – 2024 |
| II | : | 2025 – 2029 |
| III | : | 2030 – 2034 |
| IV | : | 2035 – 2039 |
| V | : | 2040 – 2045 |
The Concept of IKN and its Global Alignment
The Minister of Investment said that there would be a minimum investment of IDR 200 trillion for the construction of IKN phase I. The government allocated IKN investment funds from the Anggaran Pendapatan dan Belanja Negara (APBN) of around IDR 88.54 trillion to IDR 92.34 trillion (+19%) and it is expected there is a collaboration from the private sector of IDR 377.46 trillion to IDR 393.66 trillion, bringing the total to IDR 466 – 486 trillion.
IKN Nusantara as a Green, Digital, and Modern City
This investment plan is expected to materialize due to the attractiveness of the prospective IKN Nusantara investment. IKN Nusantara has a concept in the form of 70% of the forest area with a digitalized system and 80% of public transport moving unmanned. This makes Nusantara a green city, a digital city, a modern city and a city of the future.
The concept of IKN Nusantara is considered by various countries to be in line with the global vision in the global energy transition, from the use of new, renewable energy from fossils to renewable energy. In addition, good relations between Indonesia and various countries are also a factor driving investment. Success in obtaining investment will support Indonesia’s commitment to become a developed country by reducing greenhouse gas emissions by 29%, especially in the main sectors, namely forestry, energy, industry and oil and gas.
Positive Impacts and Importance of IKN Nusantara
The realization of the transfer and acceleration of the development of the IKN Nusantara is the focus of the government because it will bring various positive impacts to Indonesia. The relocation of the IKN Nusantara is not just a transfer of the center of government but it is as a form of equitable distribution of development and the national economy.
The public’s perception that national growth is only concentrated on the island of Java will change due to the development of the IKN Nusantara in Kalimantan. The shifting of business activities by various business actors will also have an impact on social life, which requires supporting facilities and competent resources in achieving business goals. This will encourage the development of public services and the quality of Human Resources (HR) in the surrounding area.
Government’s Plans for a Friendly Investment Ecosystem
Realizing this hope, the government plans to develop a friendlier and easier investment ecosystem. Expert Staff for Institutional Relations of Bappenas as well as the Chair of the Legal and Institutional Working Group (Pokja) on the Transfer of IKN Nusantara at the Minister of National/Bappenas Development Planning, Diani Sadiawati said that the government currently has been conducting discussions and preparations regarding the draft government regulation regarding ease of doing business and licensing and investment facilities. Business consultants also always support the realization of the government’s expectations by assisting local and foreign investors as investment gateways and can enter the Indonesian market.
Are you interested in exploring investment opportunities in the promising infrastructure landscape of Indonesia, particularly in the captivating region of Southwest Indonesia? Our team of experts in SW Indonesia is here to assist you in navigating the intricacies of investing in Infrastructure IKN Nusantara and other exciting projects in the country. Contact us today at +62 2993 2132 to discuss how we can support your investment endeavors and help you make the most of the growing attraction of Infrastructure IKN Becomes Attraction of Investment in Indonesia. Together, let’s shape the future of Indonesia’s infrastructure landscape and unlock its tremendous potential.
