Tempo is reporting that the Nusantara Capital City Authority (IKN Authority) received a total commitment of investment interest worth IDR 41.4-trillion during the three groundbreaking stages. Head of the IKN Authority Bambang Susantono said this is a clear indication of investors’ confidence and optimism in the prospect of the project.
“IKN is not just a new city, but a symbol of Indonesia’s transformation into a new and sustainable civilization,” Bambang said in a written statement on Wednesday (20/12/23.)
The IKN Authority has also received 330-Letters of Intent (LoI), with 55-percent of them coming from domestic investors looking to develop the national axis sector. To date, Singapore, Japan, China, and Malaysia have submitted the highest number of LoIs, say Tempo.
The investment value in the first groundbreaking on September 21 to 22 was IDR 23-trillion consisting of ten companies in the Nusantara Consortium, namely Agung Sedayu Group (Lead Consortium), Salim Group, Sinar Mas, Pulau Intan, Djarum, BCA Group, Wings Group, Adaro Group, Barito Pacific, Mulia Group, and Astra Group.
In the second groundbreaking on November 1 to 2, the investment value reached IDR 13.1-trillion from the Ministry of Transportation, Mayapada Hospital, Pakuwon Group, JIS, Hermina, Bank Indonesia, BPJS Employment, and PLN Indonesia. At this stage, the government also inaugurated the revitalization of the state elementary school or SDN 020 Sepaku, report Tempo.
Investors interested in the IKN project can benefit from various incentives and compensation as laid out by Government Regulation No. 12 of 2023, including zero-percent corporate income tax (PPh) for ten years, zero-percent import value-added tax (VAT), zero-percent sales tax on luxury goods (PPnBM), zero percent import duty, and zero-percent land and building tax (PBB) for ten years, according to Tempo.
Bambang explained that the IKN development is not only focused on economic progress but also on preserving the environment. The green smart city concept of IKN is prioritized for a sustainable future for future generations.
“IKN is not just a city, but a manifestation of the vision of a progressive, inclusive, and sustainable Indonesia,” Bambang said. “The active participation of investors represents the collective spirit to achieve a Golden Indonesia 2045.”