Indonesia's Nusantara city development will not need state budget funds in the future, says govt

PENAJAM PASER UTARA, East Kalimantan (Bernama-Antara): The Nusantara Capital Authority (OIKN) predicts that in the next 10 years, the development of Indonesia's future capital city will not require funds from the State Budget (APBN), reported Antara news agency.

"Our prediction is that investor interest in Nusantara City will continue to increase," OIKN Deputy for Funding and Investment Agung Wicaksono said when contacted from Penajam, East Kalimantan, on Sunday.

According to him, within a period of six months, investment in Nusantara City reached approximately Rp50 trillion (US$3.1 billion), starting from September 2023 to February 2024.

"And we predict that throughout this year (2024), investment entering Nusantara City will be around Rp55 trillion (US$3.5 billion)," he said.

So the estimated investment achievement exceeds OIKN's target of approximately Rp100 trillion (US$6.3 billion) by the end of this year.

If the investment achievements during the six months are accumulated within 10 years of Nusantara City starting to fully operate according to President Jokowi's target, he said, then the investment will reach approximately Rp1,000 trillion (US$63.6 billion).

"If the assumptions or predictions are correct, then APBN funds will no longer be needed to develop Nusantara City," he added.

This year, he continued, China and Malaysia will invest in the property sector in Nusantara City, which is built in the Sepaku Sub-district, North Penajam Paser District, East Kalimantan.

The total investment value recorded to be realised by the two countries in Nusantara City is around Rp40 trillion (US$2.5 billion).

Then Ciputra Group's investment will also be realised this year by developing an independent city complete with a number of features, such as housing, commercials, golf courses, and villages in the Nusantara City area, but the investment value is not yet known.

The property development project from two foreign investors and the Ciputra Group is still in the feasibility study evaluation process, targetted to start tendering around April 2024, Agung Wicaksono said. - Bernama-Antara