Land prices in Indonesia's new capital may soar tenfold next year

President Joko (Jokowi) this year encouraged domestic and foreign investors to invest their money or investments in the national capital (IKN) of East Kalimantan. His enticement was accompanied by a picture that the current price of land in IKN could soar up to 10 times next year. Joko said land prices in IKN are still very cheap and are sure to rise in the future. Land prices could double, triple, quintuple, 10 times next year, Joko said at a groundbreaking ceremony for Chinese investor Delonix Group's project in the IKN area of East Kalimantan. If you want to invest this year, I need to warn you. Foreign investors are now starting to pour in, wanting to invest in IKN, which leads them to believe that the region is a very attractive place to invest. During the groundbreaking of the Astra Business Center and Nusantara Botanical Garden projects, Joko also said that land prices in the IKN area are still cheap. He even compared the price of land in IKN Nusantara with Balikpapan and Jakarta, as the price of land in IKN is still in the range of Rp 400,000-800,000 per square meter. Joko said that investing in IKN East Kalimantan means buying the future, but if he changes his mind later, the land will disappear as the price is now between Rp 400,000 and Rp 800,000 per square meter.

Joko also compared the price of land in Balikpapan, near IKN East Kalimantan, to the city of Jakarta, which is a long way away. Just one square meter in Balikpapan costs Rp 15 million, while in Jakarta it reaches Rp 200 million. Since its launch in 2023 until the 8th groundbreaking, IKN's private investment has totaled Rp 53.5 trillion. The Acting Deputy Director of the Metropolitan Administration (OIKN) said that the value of the investment was Rp 52.2 trillion until the 7th groundbreaking, after which it was increased by Rp 1.5 trillion, which means that the total investment amounted to Rp 53.5 trillion, excluding the funds from Bank Indonesia (BI) and PSSI.

The eighth IKN groundbreaking totaled Rp 1.5 trillion, including the construction of Australian Independent School Nusantara (Rp 150 billion) and Delonix Nusantara (Rp 500 billion). Then there is IKN Forest Terrace in Plataran (Rp 15 billion), Magnum Resort Nusantara (Rp 800 billion) and D'Prima Hotel Nusantara (Rp 100 billion). In the future, IKN will have its ninth groundbreaking, though when exactly is uncertain. Many foreign investors have submitted letters of intent (LoI), but as the president said, they are currently choosing which ones are relevant to the IKN development.