According to Indonesia Business Post, CITIC Construction will participate in the construction project of Indonesia's new national capital.
The authority of Nusantara Capital City, or IKN aims to build 70 residential towers for state civil servants (ASN) this year. Agung Wicaksono, the IKN Authority (OIKN) Deputy for Funding and Investment, said seven companies had conducted feasibility studies and would be the initiators of the development.
OIKN held a market sounding today to gauge market interest in residential development in Indonesia’s new capital through the Government and Business Cooperation Scheme (KPBU).
“There are already seven initial investors whose proposals have been prepared and feasibility studies have been completed, so today's interested parties can become challengers in the bidding process,” Agung said at Ayana Midplaza Jakarta on Thursday, March 7.
The seven investors include CITIC Construction, PT Perintis Triniti Properti Tbk, PT Nindya Karya (Persero), PT Intiland Development Tbk, Ciputra Group, IJM Corporation Berhad, and Maxim Global Berhad.
Three of the seven companies are foreign investors; CITIC Construction which is a construction and engineering subsidiary of the CITIC Group, IJM Corporation Berhad, and Maxim Global Berhad.
Agung estimated that the investment value would reach at least Rp50 trillion. However, he stressed that the feasibility study was still underway.
The entire housing construction in IKN is expected to require an investment value of more than Rp 150 trillion, he continued. OIKN has also allocated 600 hectares of land for the apartments, and the construction of several towers will be completed in 2025.
Today, OIKN conducted a market sounding for collaboration on three residential projects. These include apartment and landed house projects with a total investment value of Rp7 trillion. These housing projects will be for the state apparatus (ASN) and military and police personnel.
The first project is eight apartment towers of 266 units with an investment value of Rp2.2 trillion. The second project is 209 landed housing units with an investment value of Rp2.3 trillion. The third project is the construction of eight apartment towers of 208 units with an investment value of Rp2.5 trillion.
At a conference on sustainability hosted by Singapore's Temasek Holdings in June 2023, Widodo introduced 300 development packages worth $2.6 billion to investors interested in building Nusantara. The Indonesian government offered incentives such as tax holidays for companies investing at least $647,000 in projects like airports, toll roads, hospitals, shopping malls and hotels.
“Under the PPP [Private-Public Partnership] scheme, the NCA is advancing with a Chinese consortium led by CITIC Ltd. to construct 60 residential towers in the capital,” Wicaksono said. CITIC Ltd., one of China's largest conglomerates, is 58% owned by CITIC Group.