Indonesia’s upcoming capital city, Ibu Kota Nusantara (IKN), also known as Nusantara Capital, is boosting foreign investor confidence through its structured investment guarantee. This momentum follows a formal meeting between the Nusantara Capital Authority and the China Harbour Engineering Co. Ltd. (CHEC) – IJM Consortium.
CO-Guarantee System Strengthens Investor Security
On April 16, the delegation, led by CHEC Vice President Liu Baohe, visited the IKN Authority Office in East Kalimantan to discuss ongoing public-private partnership (PPP) projects and long-term investment opportunities in Indonesia’s new capital.
During the session, the Nusantara Capital Authority reaffirmed its commitment to protect investor interests by implementing a co-guarantee scheme involving PT Penjaminan Infrastruktur Indonesia (PT PII) and the Ministry of Finance. This guarantee framework aims to minimize investor risk and provide assurance throughout the lifespan of PPP agreements.
Basuki Reassures IKN Investors
Head of the Nusantara Capital Authority, Basuki Hadimuljono, emphasized that the IKN investment guarantee ensures continuity and legal protection for investors involved in the PPP framework.
“So, there should be no more doubt from you, the investors, about investing here. It’s not only us who guarantee that the development won’t be terminated midway, but the Ministry of Finance will also provide approval,” said Basuki in a written statement on April 19 as reported by Detik.com.
He further explained that the co-guarantee mechanism is specifically designed to uphold the government’s financial obligations under the signed contracts, adding an additional layer of security for private partners.
Foreign Investor Confidence Strengthened by CHEC-IJM
The CHEC-IJM Consortium welcomed the Indonesian government’s efforts to establish a risk-mitigating structure for foreign stakeholders. This development helped build confidence in their ongoing and future investment plans.
Liu Baohe, Vice President of China Harbour Engineering Co. Ltd., shared his optimism after the meeting. “Our visit to Indonesia this time is a monumental one. We are increasingly confident about beginning long-term investments in IKN,” he said.
This assurance reflects a growing trust in the transparency and consistency of the IKN project execution, particularly for foreign players looking for long-term returns.
Public-Private Partnership Projects in Progress
The CHEC-IJM Consortium has already begun working on several public-private partnership projects. One of the major developments includes the construction of 20 residential towers for civil servants, consisting of 1,058 housing units, in Sub-Planning Area 1B of the Central Government Core Area (KIPP).
Additionally, the consortium is involved in building a 26.87-kilometer road and a multi-utility tunnel (MUT) in Sub-Planning Area 1C. These infrastructure projects are essential components of the initial development phase in Nusantara.
Government Commitment to Long-Term Infrastructure
Basuki also highlighted Indonesia’s consistent track record with PPP projects, particularly through the Ministry of Public Works and Public Housing (PUPR).
“The Indonesian government, through the Ministry of PUPR, has extensive experience in implementing many PPP projects without ever terminating one,” Basuki noted. He also clarified that the IKN Authority must secure approval from the Ministry of Finance before initiating any PPP procurement process.
This due diligence ensures that each project moves forward with full government support and reduces the risk of disruption during execution.
Nusantara Capital Development Attracting Global Interest
The commitment to sustainable and transparent development in Nusantara has begun attracting wider global attention. Through strategic partnerships like the one with CHEC-IJM, the IKN Authority seeks to create a cooperative investment environment that benefits all stakeholders.
By offering a solid legal framework, reliable oversight, and a focus on long-term infrastructure investment, Indonesia is positioning Nusantara as a secure and attractive destination for global investors. As interest grows, the IKN investment guarantee stands as a pillar of trust for those looking to take part in shaping the country’s future capital.
Source: finance.detik.com
Image: DOK. IKN
