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View all search resultsIKN Authority, UAE firm ink Rp 4t deal for new project in new capital
In the first such large commitment for months, the IKN Authority has secured a commitment of nearly US$240 million from the Emirati real estate giant to build a mixed-use development in the future capital.
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Workers carry a ladder past a custodian on Aug. 14, 2025, at a government facility in Nusantara, the new national capital under development in East Kalimantan. (AFP/Yasuyoshi Chiba)
T
he Nusantara Capital City (IKN) Authority has secured a Rp 4 trillion (US$237.8 million) investment from Dubai-based Ayedh Dejem Group to develop a mixed-use project in the nation’s future capital in East Kalimantan.
Signed on Friday, the agreement will allow the United Arab Emirates infrastructure and real estate group to utilize 9.7 hectares of sector 1A in the Core Government District (KIPP) situated in the northern third part of the city, which stretches from the northeast to the southwest with a belly-like bulge to the east.
Located next to Plaza Bhinneka Tunggal Ika in the central KIPP, the new development will include office buildings, commercial areas, shopping centers and a mosque.
“There is significant growth in Indonesia’s economy and inshallah, the economy [in Nusantara] will grow rapidly, thereby creating large-scale project demand,” Ayedh Dejem Group chairman Ayedh Dejem said in a statement published on Saturday.
Ayedh said the company’s confidence about investing in Nusantara was based on the economic strengths of Indonesia and the UAE.
“Our core business is real estate development. Considering Indonesia’s large population and scale, as well as Dubai’s position, which is among the world’s 20 largest economies, we highly expect significant growth in Nusantara’s real estate development,” Ayedh added.
Sudiro Roi Santoso, undersecretary for funding and investment at the IKN Authority, said the KIPP 1A project would start with detailed designing and planning, followed by a licensing and bidding process that was estimated to take up to a year and a half.
