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Investors eye new capital but stay on sidelines ahead of elections
The Nusantara Capital City (IKN) Authority reported increasing interest from firms looking to put funds into the project, but few are willing to commit ahead of the 2024 election.
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Nusantara Capital City (IKN) Authority head Bambang Susantono speaks to business executives in Davos, Switzerland on Jan. 17. (Investment Ministry/-)
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ore investors have expressed their interest in the Nusantara Capital City (IKN) project with the number of firms reaching out to the IKN Authority growing, signaling a steady rise in private sector support to realize the project.
The new capital city project has received 90 letters of intent from domestic and foreign institutions seeking to inject funds into the project, according to presentation material shown by IKN Authority head Bambang Susantono during the Mandiri Investment Forum on Feb. 2.
This figure was 17 letters more than Bambang had mentioned two weeks earlier at the World Economic Forum (WEF) in Davos.
A letter of intent is a written statement of an entity’s intention to enter into a formal agreement, but the document is non-binding, meaning institutions submitting a letter may still back out from the commitment.
"We have received many letters of interest. Up until last week, the number reached 142 and around 90 of those we have categorized as serious [to enter the project]," Bambang told lawmakers during a meeting with House of Representatives Commission XI, which oversees finance and the state budget, on Monday.
Read also: New capital initial land offering '44 times oversubscribed’
Documents presented by the new capital chief showed that the infrastructure-utility and consulting industries had the highest increase in preliminary agreements since the pitch in Switzerland mid-January, both saw an increase of seven and eight letters, respectively.
