Jakarta, September 13, 2023 – The New Capital City Authority (OIKN) has announced that starting next week, private companies will conduct groundbreaking ceremonies for the first time in the development of Indonesia’s New Capital City (IKN). This marks a significant milestone as it is the first time the new capital’s construction is initiated without relying on the state budget (APBN).

Agung Wicaksono, Deputy for Funding and Investment at OIKN, disclosed that private investment would be utilized for projects including hotels, hospitals, shopping malls, and sports facilities.

“Let me spill the beans, next week will see the commencement of IKN development through private investment, using funds not from the state budget. While 40% progress has been achieved so far, next week we will start building hotels, hospitals, shopping centers, and sports facilities with funds from sources other than the state budget,” Agung stated during the Main Event: A Decade of National Strategic Projects (PSN) – Infrastructure Forum at The Kasablanka Hall in South Jakarta on Wednesday, September 13, 2023.

He further emphasized that the IKN project had received 284 Letters of Intent (LOIs) or investment commitments from approximately 21 countries. The majority of these investments are reported to originate from Indonesia.

“Most of it, almost half, comes from within the country. However, neighboring countries such as Malaysia and Singapore are also significant contributors. China and Japan have shown substantial interest. We will continue to oversee this to realize investments in IKN,” he elaborated.

It was previously mentioned that there would be two groundbreaking events in 2023, scheduled for September and November. Companies such as School, Ciputra Group, PT PP (Persero), Jambuluwuk Hotel & Resorts, and Vasanta Innopark are among those involved in the construction of housing and hotel facilities.

Furthermore, the Minister of Investment and Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, had revealed that two prominent Indonesian billionaires would also participate in the project. These billionaires are Sugianto Kusuma, known as Aguan, and Sukanto Tanoto, who have expressed their commitment to invest in IKN.