Progress and Development of Ibu Kota Nusantara
The development of Ibu Kota Nusantara (“IKN”) as Indonesia’s new capital city is a project that has attracted significant attention, particularly in its construction progress. The Government stipulates the implementation of the preparation, construction, and relocation of the national capital city through Law Number 3 of 2022 as lastly amended by Law Number 21 of 2023 regarding the National Capital (the “IKN Law”).
The development plan for IKN is further regulated in Presidential Regulation Number 63 of 2022 regarding Details of Master Plan for Ibu Kota Nusantara (“PR 63/2022”). In order to accelerate the development of IKN, the President recently issued Presidential Regulation Number 75 of 2024 on Acceleration of Development of IKN (“PR 75/2024”). Please see our Newsflash on PR 75/2024 in Acceleration of Development of Nusantara Capital
We will now provide further updates on the progress in IKN’s development.
♦ Progress of Development
As of July 15, 2024, based on the data from the Ministry of Public Works and Public Housing (the “Ministry of PUPR”), the development progress of IKN is at 87.58% for the physical progress from 2020 to March 2023 and 44.22% for the physical progress from April 2023 to 2024.
Please note that the information on the progress of IKN development has not been fully integrated. The data below is compiled from press releases, news, and articles.
♦ Investors and Groundbreaking List in IKN
The following are the groundbreaking and a list of investors for the development of IKN that have been executed from September 2023 to June 2024:
As of July 30, 2024, the President has been working in the IKN for two days. President Joko Widodo is reported to be staying at the Presidential Office in IKN. During the stay, Joko Widodo will be meeting with guests and holding meetings with the officials of IKN.
As the development progresses, we will continue to provide updates on the progress of IKN’s development.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), M. Raehan A. Fadila (mfadila@aksetlaw.com) or Arthur Basa Okuli Nainggolan (anainggolan@aksetlaw.com) for further information.
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