Indonesia Set to Invest Nearly USD 3 billion to Complete Second Phase of New Capital Development

• Sommana Yan
• 4 February 2025
• International News
• 2341 Views

The Indonesian government will allocate an additional 48.8 trillion IDR (approximately USD 2.99 billion) to continue its new capital (IKN) development during the second phase, which spans from 2025 to 2029. Vietnam Plus reported this information on 23 January 2025.

In the first phase (from 2022 to 2024), the Indonesian government has already invested 89 trillion IDR into essential infrastructure construction in the new city.

According to Basuki Hadimuljono, the head of the Nusantara Capital Authority (OIKN), the funds for the second phase will be used to complete vital construction projects, including an ecosystem reserve and offices for the legislative body and judiciary.

Basuki emphasized that the 48.8 trillion IDR allocated for the second phase is necessary for finishing the legislative building, the courthouse, and several other government agency facilities. The budget will also cover the costs of maintaining and managing infrastructure and amenities during the operational phase.

Additionally, the Nusantara Capital Authority is implementing a public-private partnership (PPP) program valued at 69.93 trillion IDR, which includes the construction of six new road projects, notably a 138.6-kilometer multi-purpose tunnel (MUT) located in the solar power plant area, along with several investment initiatives.

Basuki also mentioned that he is studying plans to construct 97 more apartment buildings and 129 more townhouses. Furthermore, the PPP program will encompass hotel, residential, retail, and office development projects totaling 6.49 trillion IDR. These major proposals will soon be presented to the Indonesian President for approval.

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