The Nusantara Capital Authority (IKN) has received 416 Letters of Intent (LoIs) from both local and foreign investors ahead of Indonesia's 79th Independence Day on 17 August 2024, up from 369 LoIs in January. Rusmin Lawin, Senior Expert in Regional Economic Development at IKN, noted the overwhelming interest in the Core Government Area (KIPP) of IKN. Only 25% of the 6,000 hectares in KIPP are available for development, with 65% designated as forest and 10% for food production. Rusmin emphasized the limited availability of land, urging investors to seize the opportunity now. He highlighted President Joko Widodo's endorsement of Nusantara as the future of Indonesian investment. Many of the LoIs are from members of the Indonesian Real Estate Association (REI), reflecting heightened interest as the organizational structure of IKN has become clearer. Foreign interest includes significant participation from Malaysia, China, Europe, the US, and the Middle East. Notably, President Widodo is set to sign an agreement with UAE-based Emaar Properties in July 2024, marking a major milestone for IKN. Emaar Properties, renowned for the Burj Khalifa, signifies high-profile international investment in the new capital.
Rusmin revealed that potential investments from China and Malaysia could amount to IDR 60-70 trillion (approximately USD 4 billion), with agreements expected by the end of 2024. His extensive efforts to attract investment, recognized by a MURI record for international outreach, have involved visits to 19 countries from 2020 to 2023. To accommodate the influx of investment interest, Rusmin plans to offer flexible land allocations beyond KIPP, proposing themed clusters like Middle East Town and Korean Town. Phase 1 of development focuses on key infrastructure, while Phase 2 will involve these thematic developments. Rusmin concluded by noting the government's foundational role in early development, paving the way for significant private sector involvement under future administrations.
