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New capital initial land offering '44 times oversubscribed’
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IKN Authority head Bambang Susantono speaks to business executives in Davos, Switzerland, on Dec. 17, 2022. (Investment Ministry Youtube Channel/-)
T
he Nusantara Capital City (IKN) Authority was caught off-guard by huge investment interest in the project as multiple sectors swarmed for inquiries.
The authorities are currently reviewing 71 letters of intent from domestic and foreign firms that are ready to inject funds within the next two years and are in “active discussions” with 25 of them, according to IKN Authority head Bambang Susantono.
Bambang was part of a combined Indonesian business and government delegation seeking to draw investment to the country at the World Economic Forum (WEF) in Davos, Switzerland.
“This is to my surprise, because I was taught by so many people: ‘Oh, 2023 will be a very difficult year’, and things like that,” Bambang explained on Tuesday in a speech at the WEF’s Indonesia Pavilion.
The 921 hectares (ha) of land made available for initial investment in 2024 were “oversubscribed 44 times”, according to the IKN Authority, meaning interest in land parcels far exceeded supply.
As a result, the authority opened up more of the Core Government Area (KIPP) and even some of the surrounding zones for private-sector investors, departing from an initial plan to only open up a portion of the KIPP.
Some investors are asking for packages “including golf courses and townhouses”, Bambang revealed.
