Jakarta, September 12, 2023 – The list of investors interested in participating in the development of Indonesia’s New Capital City (IKN) continues to grow. According to Agung Wicaksono, Deputy for Funding and Investment at the New Capital City Authority (OIKN), the authority has received 281 Letters of Intent (LoI) from private investors to be involved in the construction of the New Capital City. The number of IKN investors increased following the 43rd ASEAN Summit held from September 7 to September 9.

Agung stated that the LoIs for IKN development predominantly come from ASEAN countries. “The highest number is still from Singapore, with 27 LoIs, followed by Japan with 25 LoIs, Malaysia with 19 LoIs, and China with 17 LoIs,” he said during a meeting at the Indonesian House of Representatives in Jakarta on September 11, 2023.

So, who are the investors interested in participating in IKN?

  1. France: During the first day of the G20 Summit on Saturday, September 9, 2023, President Joko Widodo (Jokowi) held a bilateral meeting with President Emmanuel Macron of France. Jokowi appreciated France’s plan to invest in strategic sectors in Indonesia, including the New Capital City (IKN). He expressed hope that the agreements between the two countries could be realized in the near future.
  2. China: Prior to meeting with President Emmanuel Macron, Jokowi met with Chinese Premier Li Qiang in a bilateral meeting on Friday, September 8, 2023, at the Merdeka Palace in Central Jakarta. During the meeting, President Jokowi urged concrete implementation of cooperation between Indonesia and China in the construction of the New Capital City (IKN). In a previous meeting with Chinese President Xi Jinping on July 27, 2023, Jokowi had invited Chinese investment in the IKN project. The interest from Chinese investors in Indonesia, including IKN, was substantial.
  3. Malaysian and Bruneian Companies: Besides France and China, companies from Malaysia and Brunei are also planning to invest in IKN. Agung Wicaksono mentioned that the authority has already received 19 Letters of Intent from Malaysian companies. Additionally, Bruneian companies have expressed interest in investing in IKN, particularly in the halal industry. These business commitments from Malaysia and Brunei were secured during the Borneo Business Roundtable, part of the ASEAN Business Advisory Council (ASEAN-BAC) events, held on September 6, 2023, in Jakarta.
  4. Domestic Investors: Not all investors are from foreign countries; domestic investors are also keen to participate in IKN. One notable domestic investor is Sugianto Kusuma, widely known as Aguan, who is set to invest in various facilities within IKN. Aguan’s investments include hotels, urban parks, sports centers, and cafes. He leads the consortium for Domestic Investment (PMDN) in IKN. Aguan expressed optimism that Indonesia could celebrate its Independence Day on August 17, 2024, in IKN.
  5. Sukanto Tanoto: Another prominent investor in IKN is Sukanto Tanoto, who, alongside Aguan and others, plans to develop public facilities. Moreover, these conglomerates are expected to construct stations within IKN. Bahlil Lahaladian, the Minister of Investment and Head of the Investment Coordinating Board (BKPM), disclosed that groundbreaking for these projects would commence in September. Sukanto Tanoto has significant land concessions in the IKN area, totaling around 48,000 hectares in Kalimantan Timur. This land has been allocated for use in the new capital city.
  6. Anthoni Salim: Anthoni Salim, from the Salim Group, is reportedly following Aguan and Sukanto Tanoto to invest in IKN. Bahlil Lahadalia confirmed that the Salim Group and other domestic entrepreneurs would conduct groundbreaking ceremonies in IKN in September. Their investments will include hotels, meeting spaces, and restaurants.

These investments from various investors, both domestic and international, are expected to contribute significantly to the development and success of Indonesia’s New Capital City (IKN).