The National Capital Integrated Coastal Development (IKN) Authority aims to attract approximately IDR 100 trillion in non-State Budget (APBN) investments for the development of Nusantara City, Indonesia's future capital, in 2024. Bambang Susantono, Head of the IKN Authority, expressed optimism about attracting more long-term investors to Nusantara City in the upcoming year. President Joko Widodo announced a total estimated budget of around IDR 466 trillion for the development of the future national capital in parts of Penajam Paser Utara Regency and Kutai Kartanegara Regency in East Kalimantan. Approximately 19-20% of this budget is expected to come from the APBN. In 2023, 23 domestic investors initiated construction projects in the new capital, collectively investing around IDR 41 trillion. These investments span various sectors with varying scales of financial commitments.
Susantono emphasized the meticulous selection of investors aligned with the vision of making the new capital a smart city, promoting good governance principles. President Jokowi is scheduled to lay the foundation stone for new physical developments in Nusantara City between January and February 2024, with around 15 investors participating. The IKN Authority's goal for 2024 is to attract investments totaling approximately IDR 100 trillion, coming from both domestic and international investors. This includes contributions from conglomerates in Indonesia involved in developing mixed-use areas in the future capital. Apart from APBN, funding for Nusantara City's development will come from public-private partnerships (PPP), government-business collaborations (KPBU), private sector investments, State-Owned Enterprises (BUMN), and Regional-Owned Enterprises (BUMD), according to Bambang Susantono. Several Indonesian conglomerates, including Agung Sedayu Group's Aguan-Sugianto Kusuma and Barito Pacific's Prajogo Pangestu, have invested in the IKN development project. As of December 29, 2023, a total of 23 investors have committed around IDR 42.1 trillion in investments for the IKN project. Notable contributions include the Nusantara Consortium, led by Aguan, investing around IDR 20 trillion in mixed-use development projects, including malls, hotels, and offices within IKN.
