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Local consortium in IKN is CSR based, Astra Land executive says
The private consortium investing in the Nusantara Capital City (IKN) operates on a corporate social responsibility (CSR) basis, according to Astra Land president director.
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Construction workers can be seen on September 22, 2023, at the Nusantara Capital City (IKN) site in Penajam North Paser regency, East Kalimantan. President Joko "Jokowi" Widodo said IKN development was around 40 percent complete. (Antara/Sigid Kurniawan)
T
he private consortium of local conglomerates that has invested in the Nusantara Capital City (IKN) project is said to operate on a corporate social responsibility (CSR) basis, according to the Astra Land president director.
“The [private] consortium is CSR [based]. [Astra Land is] taking instructions from the consortium regarding what to construct,” Astra Land president director Wibowo Muljono told The Jakarta Post during the 2023 Jakarta Architecture Festival on Friday.
The government has tried to lure private investors to invest in the new capital city but has found this difficult. The ongoing construction of the city has relied largely on the state budget.
Read also: Local investors kick-start commercial projects in Nusantara
That changed when President Joko “Jokowi” Widodo said on Thursday that there was a consortium of local investors willing to invest Rp 20 trillion (US$1.3 billion) in the project on a commercial basis. Some estimate it could be Rp 40 trillion.
The consortium is led by Sugianto “Aguan” Kusuma, founder of property giant Agung Sedayu, and includes conglomerates from many sectors, such as Djarum Group, Salim Group, Sinarmas, Pulau Intan, Adaro Group, Barito Pacific, Mulia Group, Astra International and Kawan Lama Group.
Wibowo said that the Rp 40 trillion figure is the targeted budget for the CSR, and this would cover various elements of CSR construction, including reforestation.
