The Asian Infrastructure Investment Bank (AIIB) has pledged a 1 billion USD investment in Ibu Kota Nusantara (IKN), Indonesia’s new capital city. This significant funding will accelerate the development of IKN as a modern, green, and inclusive capital.
The Role of AIIB Investment in IKN’s Infrastructure
AIIB’s 1 billion USD investment in IKN will drive the construction of core infrastructure. This investment includes building parliamentary structures and supporting ecosystems vital for relocating the nation’s political center.
Following a productive meeting with AIIB President and Chairman of the Board of Directors, H.E. Jin Liqun, in Jakarta on Friday (14/03/2025), Head of the IKN Authority, Basuki Hadimuljono, shared his optimism. “We are optimistic that with AIIB’s support and other strategic partners, combined with the valuable insights from this meeting, we can realize IKN as a modern, green, and inclusive capital city.”
Moreover, this funding will support sustainable infrastructure projects that align with IKN’s vision of becoming a smart and eco-friendly city. Consequently, it will help reduce congestion in Jakarta while promoting balanced development across Indonesia.
How AIIB’s 1 Billion USD Investment in IKN Supports Economic Growth
The financial support from AIIB will significantly boost local businesses and create job opportunities for Indonesians. The development phase from 2025 to 2029 will prioritize essential projects, such as the Presidential Palace, the Parliament complex, and housing for civil servants.
As reported by Antara News Basuki further explained, during the meeting “We presented various strategic projects to be developed in IKN, focusing on core infrastructure that supports IKN as the Political Capital of the Nation by 2028. We also detailed the funding schemes, which include a combination of the state budget, private investment, Public-Private Partnerships (PPP), and creative financing.”
Strategic Partnerships Driving IKN’s Growth
By collaborating with the Indonesian government and private investors, AIIB will ensure the success of IKN’s development. Furthermore, IKN is working closely with the Ministry of National Development Planning (Bappenas) to include all relevant projects in the Bluebook, a document outlining Indonesia’s priority infrastructure projects. This collaboration will streamline the funding process and attract more international investors, ensuring the timely completion of key infrastructure initiatives.
Advancing IKN’s Green and Inclusive Vision
IKN’s dedication to building a sustainable and inclusive city is evident in its development strategy. Furthermore, AIIB’s investment will facilitate the integration of social and commercial housing within the Central Government Core Area (KIPP), creating a vibrant and dynamic environment for both residents and businesses.
The phased development plan includes:
- 2022-2024: Initial relocation and core infrastructure development.
- 2025-2029: Establishment of IKN as the political capital.
- 2030-2034: Progressive expansion of infrastructure.
- 2035-2039: Advanced development phase.
- 2040-2045: Solidifying IKN’s status as a “Global City for All.”
Driving Long-Term Impact and Global Recognition
The AIIB investment in IKN of 1 Billion USD marks a significant milestone in Indonesia’s journey toward creating a modern and sustainable capital city. With strategic partnerships and a clear development roadmap, IKN is set to become a thriving hub that reflects Indonesia’s growth and innovation. Additionally, the project’s commitment to eco-friendly practices and inclusive infrastructure will position IKN as a model for future urban development. As progress continues, the world will watch how this ambitious project unfolds.
Source: antaranews.com, 1tulah.com
Image: ikn.go.id
