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IKN announces plan for 70 residential towers with state guarantees
The construction work is to be conducted by local and foreign companies and to be paid for after completion from the state budget through the Nusantara Capital City (IKN) Authority.
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A worker walks along part of the construction site of the new capitaNusantara in North Penajem regency, East Kalimantan on June 8, 2023. (Antara// Fakhri Hermansyah)
T
he Nusantara Capital City (IKN) Authority has announced plans to begin work on 70 residential towers in the future capital city this year through a public-private partnership (KPBU) scheme.
To speed up the process, the projects would not be based on the regular public-private partnership (PPP) tender, which usually takes 18 months, the IKN Authority explained in a press briefing on Thursday, adding that the towers were to be finished in 2025 or 2026.
The apartments in the towers are to be allocated to civil servants, police and military personnel, alongside another 49 towers funded from the state budget, which are expected to be ready for handover by the end of this year.
According to the government agency, seven consortia have received letters to proceed (LTP) for these projects. They are Triniti, Nindya Karya, Intiland, Ciputra, Chinese state-owned CITIC Construction, which is part of the Nusantara Consortium, as well as Malaysia-based developers IJM Corporation and Maxim Global.
“Total capital expenditure proposed by these firms is around Rp 50 trillion [US$3.19 billion], but the amount could change depending on the feasibility study,” said Agung Wicaksono, deputy chief for funding and investment at the IKN Authority, in the press briefing.
However, their position as project executors was not yet finalized, Agung added, noting that a parallel market-sounding process opened up opportunities for other companies to register their interest before final decisions were announced around June.
“The objective of today’s market-sounding event is to attract interest from other investors, as the PPP scheme is [conducted] in the spirit of competition,” Agung explained.
