Minister Bahlil Says Private Investment for New Capital Project to Start in August

TEMPO.CO, Jakarta - Indonesian Investment Minister Bahlil Lahadalia said private sector investment in the new capital city or IKN project will be realized starting in August after the construction of basic infrastructure is completed.

“Basic infrastructure is still being built. All investment comes from the government. It is impossible for private investment to join when the basic infrastructure is not yet clear,” Bahlil told reporters at the Shangri-la Hotel Jakarta, on Wednesday, May 24, 2023.

He emphasized that the government is now focusing on completing basic infrastructure. “There are investments. Don't worry about it,” he ensured.

However, Bahlil refused to disclose potential investors interested in investing in the IKN project. “I’ll inform it later,” he shortly said.

Earlier on Tuesday, May 23, the Head of the IKN Authority Bambang Susantono claimed the government has received more than 220 letters of intent (LoI) from domestic and foreign private business players as of May 2023.

President Joko Jokowi Widodo received 24 of the total LoI when attending the G7 Summit in Hiroshima, Japan. The 34 of the LoI are followed up by the signing of a non-disclosure agreement (NDA) and are ready to be followed up to the next process.

Bambang explained that investors need time to decide on the investment for the new capital project, such as by conducting a feasibility study and directly inspecting the site in East Kalimantan.

RIRI RAHAYU

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