China’s investment in IKN is rapidly expanding, with total commitments nearing IDR 70 trillion (approximately USD 4.3 billion). The surge signals not only financial support but also deepening ties between Indonesia and China. During a recent official visit, China’s Ambassador to Indonesia, Wang Lutong, emphasized Beijing’s enthusiasm for contributing to the new capital’s development.
“We encourage more Chinese companies to take part in building this city,” Wang said during his visit to Nusantara on May 28, 2025, as reported by Kompas.com.
Strong Surge in China Investment in IKN
The majority of the investment, around IDR 68.4 trillion, comes through Public-Private Partnership (PPP) arrangements. Two major Chinese consortia, CHEC–IJM and CSCEC–CREC, lead these efforts. Their projects include integrated transportation systems (Moda Unik Terpadu) and road infrastructure, valued at IDR 27.1 trillion (approx. USD 1.7 billion) and IDR 27.9 trillion (approx. USD 1.75 billion), respectively.
In addition, PT Delonix Bravo Investment has committed IDR 500 billion (approx. USD 31.5 million) through foreign direct investment. The company began constructing the Delonix Nusantara Commercial Complex in September 2024. This 24,200-square-meter mixed-use development will include eco-friendly hotels, serviced apartments, offices, retail space, sports facilities, and green areas.
Key Projects Backed by Chinese Investment
China-backed initiatives are reshaping crucial sectors in Nusantara. Transportation and road networks form the backbone of the capital’s development, but housing is also a high priority. The CHEC–IJM consortium is currently evaluating a housing PPP project worth IDR 13.4 trillion (USD 840 million). This project will deliver 20 residential towers for civil servants in Zone WP 1B.
These projects are in the feasibility study phase, but investor enthusiasm reflects serious long-term interest. Through these large-scale efforts, China is becoming a major contributor to IKN’s physical and strategic infrastructure.
China Investment in IKN Signals Long-Term Trust
As of May 26, 2025, the IKN Authority had received 36 Letters of Interest from Chinese investors. Thirty-two of them relate to PPPs, while four propose direct investments. This shows that interest spans beyond short-term gains. “Investment from Chinese consortia and companies has already reached nearly IDR 70 trillion in IKN. This is a major sign of trust,” said Agung Wicaksono, Deputy for Funding and Investment at the IKN Authority.
IKN’s appeal lies in its diverse opportunities, ranging from energy and digital sectors to lifestyle, waste management, and broadcasting. Investors are not just betting on infrastructure; they view Nusantara as a multi-sector hub for growth.
Beyond Capital: Knowledge and Tech Transfer
The investment wave brings more than capital. Arsjad Rasjid, Chair of the Supervisory Board of the Indonesia Business Council, stressed the strategic value of the China-Indonesia partnership.
“Money is one thing, capital. But what matters more is the transfer of knowledge, technology, and stronger cultural and people-to-people ties,” he said on May 25, 2025, as cited by Kumparan.com.
Arsjad also highlighted the historical and cultural dimensions of the partnership. He supported President-elect Prabowo Subianto’s view that Indonesia must build its future by revisiting centuries of historical engagement with China.
“We must require that. And not just from China, but from any investor coming into our country. These requirements must be met,” he added.
Government Assurance and Policy Support
To reassure investors, the Indonesian government is offering policy backing and financial guarantees. IKN Authority Head Basuki Hadimuljono stated that all projects backed by Chinese investment would proceed smoothly.
“From the ongoing investments, we guarantee that development will not stop halfway. Besides the IKN Authority, the Ministry of Finance will also provide a co-guarantee to ensure successful implementation,” he said.
This firm stance adds another layer of security for foreign investors and strengthens Indonesia’s credibility in managing mega infrastructure projects.
Future of China-Indonesia Investment Partnership
China’s investment in IKN has shifted the trajectory of Indonesia’s new capital. As more partnerships form, the focus is expanding from physical development to innovation, skills transfer, and regional influence. With nearly IDR 70 trillion already committed, the momentum shows no sign of slowing. Both countries appear poised to deepen collaboration and redefine strategic growth in Southeast Asia.
Source: kompas.com, kumparan.com
Image: RRI IKN, Andreas Trisno.
