The Minister of Investment and Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, has confirmed that the development of Indonesia’s new capital, Nusantara (IKN), is on track.
Under President Prabowo Subianto’s directive, the relocation of the nation’s capital to Nusantara must proceed as planned. One key reason for this move is the rising sea levels that pose a threat to Jakarta. President Prabowo is expected to begin working from IKN on August 17, 2028.
The Ministry of Public Works (PU) has reported that as of December 2024, the IKN development project has utilized a budget of IDR 89 trillion. Deputy Minister of Public Works, Diana Kusumastuti, stated that this budget, allocated across 109 project packages, has achieved a 61.7% completion rate.
“We remain committed to completing IKN. The allocated budget is consistently available, and preparations for the relocation to IKN have already begun,” Diana explained in an official statement, as quoted by bisnis.com on Wednesday (11/12/2024).
Diana also mentioned that the ministry has proposed several infrastructure projects, targeted for completion by December 2024, for inauguration in the near future. These include the Garuda Palace, the State Secretariat Office, and buildings within the Coordinating Ministry complex.
“In addition to infrastructure development, we are prioritizing maintenance, particularly in water supply, electricity, and sanitation, to ensure that civil servants and other residents who relocate to IKN will feel comfortable living there,” she added.
The breakdown of the progress includes:
- Batch 1 (contracted between 2020 and March 2023): 40 packages worth IDR 25.1 trillion, 95.8% complete.
- Batch 2 (contracted between April 2023 and November 2023): 31 packages worth IDR 27.6 trillion, 75.1% complete.
- Batch 3 (contracted between December 2023 and 2024): 38 packages worth IDR 36.2 trillion, 27.9% complete.
Diana emphasized that these projects will be executed with discipline to ensure the readiness of IKN’s basic infrastructure ahead of the civil servant relocation in early 2025 and the planned capital relocation in 2028.
Government Relocation Estimated for 2028
The Head of the Presidential Communications Office, Hasan Nasbi, stated that the government’s move to IKN in East Kalimantan is expected to occur in 2028, or by 2029 at the latest.
“President Prabowo mentioned that the relocation of government functions will only take place after IKN can fully operate as the political capital, meaning that executive, legislative, and judicial offices must be established there,” Hasan said, as quoted by Antara on Thursday (12/12/2024).
Previously, the Nusantara Authority revealed that several construction projects, including the Ministry of Defense, State Intelligence Agency (BIN), Indonesian National Armed Forces (TNI), and National Police (Polri) offices, are currently undergoing revisions to their Budget Implementation List (DIPA).
“These revisions are in progress, and once completed, contracts will be signed, and the projects will proceed,” explained Basuki Hadimuljono, Head of the IKN Authority, on Monday (9/12/2024).
These building projects, which have already undergone tender processes, are pending contract finalization as they await the completion of the DIPA revision, according to Lingkar.co.
Foreign Investment in IKN Projects
As the IKN project progresses, active promotion to investors continues to encourage participation.
“We are continuously meeting with potential investors, presenting the opportunities and benefits of investing in Nusantara or IKN, particularly in areas like clean industries, infrastructure, and supporting facilities,” Rosan stated at the Jakarta Convention Center (JCC), Senayan, on Wednesday (11/12/2024), as reported by CNBC Indonesia.
So far, local investments have been channeled into hotels, malls, restaurants, and the healthcare sector. Meanwhile, foreign investments have also started flowing, such as Singapore’s solar panel project through the green industry and Australia’s groundbreaking initiative in the education sector.
Rosan expressed optimism about the strong interest from investors and highlighted that government policies and incentives could further drive investments in IKN.
“There is consistent and growing interest, and we believe that fiscal incentives will significantly boost investment in IKN,” he concluded.
Sources: bisnis.com, Lingkar.co, CNBC Indonesia
Special image credit: AntaraNews
