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More investors flock to Nusantara core govt area, IKN authority claims
The majority of the investors looking into the KIPP are local businesses and members of the Real Estate Indonesia (REI) association.
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The core government district is seen under construction on March 8, 2023, at the Nusantara Capital City (IKN) in Sepaku, East Kalimantan. (Reuters/Willy Kurniawan)
M
ore investors are flocking to the Nusantara Central Government District (KIPP) of the Nusantara Capital City (IKN), the agency responsible for the development claims.
The IKN Authority said that the agency had seen 416 letters of intent (LOI) from both domestic and international investors as of mid-June, an increased from 369 at the beginning of this year.
An LOI 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 can still back out from the commitment.
IKN Authority special staff for regional economic area development and peer regions Rusmin Lawin said that currently most commitments were directed to projects in the KIPP despite the smaller amount of land available, citing a quarter of a total of 6,000 hectares.
“The [KIPP] land is limited. If you want to buy in, now's your chance,” Rusmin said, as quoted from Kompas.
The government is planning to hold the country’s 78th Independence Day ceremony in Nusantara this mid-August.
Early this year, President Joko “Jokowi” Widodo stated that he plans to start working from Nusantara in July, which he reiterated recently to reassure the public and investors following the resignation of the top two officials of the new capital’s project management agency.
