TEMPO.CO, Jakarta - The Chairperson of Real Estate Indonesia (REI), Joko Suranto, has expressed interest in investing in the Nusantara Capital City or IKN in East Kalimantan. However, he is awaiting legal certainty regarding the national capital's relocation before proceeding.
He is also waiting for more information about when the state civil apparatus or ASN will move to IKN to ensure the market. "Investments, as we need them to be, should be profitable and provide returns," Joko explained after a meeting with Commission V of the Indonesian House of Representatives at the Senayan Parliamentary Building on Tuesday, May 20, 2025.
He believes that thorough mitigation of opportunities, markets, and risks is essential to make the investment truly promising. He noted that there has been no finalization regarding specific projects or the return on investment offered by the IKN Authority. "We need further in-depth study," he added.
M. Syawali, Chairperson of the National Housing Developers and Marketers Association (Asprumnas), echoed these sentiments. He mentioned that his association had been offered a project to build three residential towers in IKN. However, the lack of legal certainty surrounding the capital's relocation from Jakarta to IKN remains a consideration.
"Pak Bas (Head of the IKN Authority) is ready to facilitate, as is the government. But because the Presidential Regulation [on the capital relocation] is not yet in place, it is difficult to ensure," Syawali explained.
Previously, the Head of the IKN Authority, Basuki Hadimuljono, asserted that there is already clarity and certainty regarding the potential market in IKN. He therefore invited REI to invest in the housing sector, encompassing both subsidized and commercial housing. The IKN Authority is offering investment opportunities through a Government and Business Entity Cooperation (KPBU) scheme.
The former Minister of Public Works and Housing highlighted various incentives available to investors in IKN. These include a 100 percent exemption from the Acquisition of Rights to Land and Buildings (BPHTB), competitive land ownership schemes, and fiscal facilities such as a tax holiday for investments exceeding Rp10 billion and for the MSME sector.
Basuki further added that the government will cover the income tax or PPh 21 for all employees residing in IKN, exempt Value Added Tax (VAT) for property and property rental services, and provide super tax deduction incentives up to 200 percent of gross income for investors making donations. "Import duty exemption is also provided for a period of 4 to 6 years to support smooth development," Basuki stated during REI's visit to Building 3 of the IKN Coordinating Ministry on Friday, May 16, 2025, as quoted from a written statement.
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