New Capital Authority Head Reveals Sectors Chosen by Malaysian Investors

TEMPO.CO, Jakarta – Head of the New Capital or IKN Authority Bambang Susantono said the Letters of Intent (LOI) from eleven Malaysian companies that confirm their interest in investing in Indonesia’s new capital will be instantly processed.

A formal answer attached with several documents, including a Non-disclosure Agreement (NDA), will be soon submitted.

“After the NDA is signed, the authority will deliver supporting and technical data to potential investors,” said Bambang in a statement in Jakarta, Wednesday, January 11, 2023.

The 11 LOIs from Malaysia added to the list of investors who have submitted LOIs which now amounted to 71. Three of them have obtained Project Initiative Permits (SIPP) issued by the government.

“More than 100 investors are interested [in the country’s new capital project]. 71 companies from abroad and within the country have sent LOIs. Domestic investors still dominate the figure than foreign ones,” Bambang explained.

The eleven investors from the neighboring country are interested in investing in various sectors, including waste management, telecommunication infrastructure, property, roads, health and pharmaceutical services, renewable energy, and e-commerce platforms. This indicates a significant development of interest in private investment in IKN.

The IKN Authority recorded that after the initial publication of investment opportunities in the project (Pre-Market Sounding), requests for land from potential investors (based on LOI) reached 965 hectares, or 25 times the land offered which was 38 hectares. Then, during the Market Sounding by Indonesian President Joko “Jokowi” Widodo on October 18, 2022, the land requests reached 1,793 hectares or 44 times higher to date.

According to Bambang, the infrastructure and utilities sectors are the most in-demand by investors, followed by mixed-used and commercial, housing, consulting services, health, private and state-owned offices, government offices, and technology.

“We are sure that the infrastructure at IKN which is the focus of 2023 can run according to plan or even faster,” he expressed optimism.

Bambang also added that the government would continue to work hard to bring in investors to IKN as a commitment not to burden the state budget.

“IKN is very important for Indonesia’s economic growth and equity. In fact, it’s not only Indonesia that will get the economic impact but also Malaysia as conveyed by the Prime Minister of Malaysia,” said Bambang.


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