IKN Authority Offers 16 Housing and Commercial Investment Projects in New Capital

TEMPO.CO, Jakarta - Head of the Nusantara Capital City (IKN) Authority Basuki Hadimuljono stated that there are still vast investment opportunities in the residential sector of Indonesia’s new capital. He encouraged housing developer associations to invest in both subsidized and commercial housing projects.

The IKN Authority is also offering these opportunities through the Government and Business Entity Cooperation (KPBU) scheme.

According to Basuki, the market potential in IKN is already clear and well-defined.

"Because this development is aimed to support the needs of state civil apparatus and state officials who will serve in Nusantara, especially to support the Judicial and Legislative office ecosystem that will soon be built," Basuki said during a meeting with Real Estate Indonesia (REI) at the IKN Ministry’s Building 3 on Friday, May 16, 2025, as quoted from a written statement.

The former Minister of Public Works and Public Housing (PUPR) outlined 16 investment opportunities in the residential and commercial sectors across Planning Sub-Regions 1A, 1B, and 1C within IKN’s Core Central Government Area (KIPP).

He also detailed a range of incentives available for investors in IKN development.

These include full exemptions on the Acquisition of Land and Building Rights (BPHTB), competitive land ownership schemes, and fiscal incentives such as tax holidays for investments above Rp 10 billion, including support for MSMEs.

Basuki added that the government will cover income tax (PPh 21) for all employees domiciled in IKN, waive Value Added Tax (VAT) for properties and rental services, and offer a super tax deduction of up to 200 percent of gross income for donors.

"Customs duty exemptions are also provided for a period of 4 to 6 years to support the smooth development," Basuki said.

REI Chairperson Joko Suranto welcomed the IKN Authority’s offer, seeing it as a chance for property developers to help shape the nation’s new capital.

"We are ready to collaborate and actively contribute to making Nusantara a sustainable and inclusive city of the future," he said.

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