S. Korea Waits for Election Results Before Investing in Nusantara

Jayanty Nada Shofa
August 24, 2023 | 10:41 am
SHARE
Lee Kang Hyun, the chairman of the Korean Chamber of Commerce and Industry in Indonesia (Kocham), becomes a panelist at the Investor Daily Round Table in Jakarta on Aug. 23, 2023. (B1 Photo/David Gita Roza)
Lee Kang Hyun, the chairman of the Korean Chamber of Commerce and Industry in Indonesia (Kocham), becomes a panelist at the Investor Daily Round Table in Jakarta on Aug. 23, 2023. (B1 Photo/David Gita Roza)

Jakarta. South Korean investors prefer to wait for the outcome of the upcoming 2024 elections before investing in Indonesia’s new capital project Nusantara, according to its business lobby group.

Indonesia will host its presidential election on Valentine’s Day next year, namely on Feb. 14. President Joko “Jokowi” Widodo has been sparing no effort to attract investors to help Indonesia relocate its capital from Jakarta to East Kalimantan. South Korean investors are in wait-and-see mode as policy changes may occur once a new president takes over.

“Nusantara is an incredibly wonderful opportunity. But to be frank, the investors are in wait-and-see mode. Perhaps once Indonesia elects their new president, we will have better clarity on the investment prospects and industries in Nusantara,” Lee Kang Hyun, the chairman of the Korean Chamber of Commerce and Industry in Indonesia (Kocham), told B Universe on the sidelines of the Investor Daily Round Table forum in Jakarta on Wednesday evening.

“Because we still don’t know who will be the next president. Their methods can change. Even though we already get the idea [of the project], investors still wish to realize their investment after the elections,” Lee said.

Advertisement

Indonesia is mostly relying on private sector money to build the city from scratch. 

The Nusantara Capital Authority body reported that as of August 7, 19 countries had proposed their willingness to invest in the new capital city. They, however, did not specify the names of the said countries. Nusantara has received 262 letters of intent, of which, 29 of them revolve around energy-related projects. The authority body also reported that 42 non-disclosure agreements had been inked.

Public Works Minister Basuki Hadimuljono revealed last week that the construction works in Nusantara were around 30 percent complete. The Public Works Ministry gets a state budget allocation of Rp 65.568 trillion (around $4.29 billion) for 2022-2024 for Nusantara. The ministry’s budget for the new city increasingly gets bigger each year: Rp 5.246 trillion (2022), Rp 26.672 trillion (2023), Rp 35.376 trillion (2024). The government’s overall 2024 budget for Nusantara totaled Rp 40.6 trillion.

Government data shows South Korean investment in Indonesia totaled an estimated $2.3 billion in Indonesia in 2022. South Korea was Indonesia’s seventh largest investor that year.

Read More: Private Investors Set to Begin Construction in Nusantara

Tags: Keywords:
SHARE

Related Articles


Business Jun 12, 2025 | 4:08 am

Nusantara to Complete 40-Meter-Wide Main Road in Six Months

The six-month timeline aligns with the government’s 2025 budget schedule, as the funding is sourced from the current fiscal year.
News May 30, 2025 | 11:43 am

First Ministerial Office Buildings Completed in Indonesia’s Future Capital Nusantara

The office complex includes four towers, a multifunctional hall, and a 254-meter-long skywalk, along with parking facilities for 120 cars.
News May 29, 2025 | 1:29 pm

Gibran Makes First Official Visit to Nusantara Capital City

VP Gibran visits IKN for the first time, inspects key projects, urges timely progress, and plants banyan tree at the Vice Presidential Palace.
News Apr 22, 2025 | 5:54 pm

Civil Servant Move to Nusantara Delayed Amid Cabinet Restructuring

The relocation of civil servants to Nusantara is postponed as the government awaits a directive from President Prabowo
News Apr 7, 2025 | 10:45 am

Rats Roam Future Capital Nusantara, Triggers Public Complaints

Nusantara, Indonesia’s future capital, is facing a rat infestation as visitor numbers spike during Eid, prompting swift cleanup efforts.
Business Mar 19, 2025 | 12:13 pm

Nusantara Gets Rp 2.42 Trillion Investment for Hotels, Offices & EV Charging Stations

The Nusantara Capital Authority Signs Cooperation Agreement with Five Private Investors, Total Investment of Rp 2.42 Trillion.
News Mar 18, 2025 | 11:04 am

Balikpapan-Nusantara Toll Road to Open for Limited Use During Eid 2025

Balikpapan-Nusantara Toll Road to open for Eid 2025 in one direction. Pending approval, it aims to ease congestion in East Kalimantan.
News Mar 13, 2025 | 1:05 pm

AI-Generated Video Falsely Depicts Flooding in Nusantara, Authorities Warn

Authorities debunk an AI-generated video falsely showing flooding in Nusantara. OIKN urges vigilance against hoaxes.
Business Feb 28, 2025 | 9:30 pm

Danantara Exec Talks Global Acquisitions, Bank Withdrawal Fears

Indonesia’s sovereign wealth fund, Danantara, plans global acquisitions as part of its expansion strategy.
Business Feb 27, 2025 | 4:47 pm

Danantara May Intervene to Stabilize SOE Stocks as Investor Confidence Wavers

Danantara may step in to support SOE stocks amid weak investor sentiment, focusing on stability, governance, and financial growth.

The Latest


News 1 hours ago

Air India Crash Death Toll Rises to 270

Air India crash death toll climbs to 270 as search teams recover more bodies; investigators analyze black box for crash clues.
News 2 hours ago

Australian Man Killed, Another Injured in Bali Villa Shooting

An Australian man was killed and another wounded after a gunman broke into their villa in Bali's Badung regency early Saturday morning.
News 3 hours ago

Slovak Hiker Injured on Mount Agung Rescued by SAR Team

Slovak hiker injured on Mount Agung rescued by SAR team after slipping at 2,600m. She sustained minor injuries but is in stable condition.
News 5 hours ago

KPK Considers Forced Summons for Singaporean Jet Tycoon in Papua Graft Probe

KPK may forcibly summon Singaporean tycoon Gibrael Isaak after he skipped questioning in a Rp 1.2t Papua graft case linked to a private jet.
Business 5 hours ago

Qatar’s Barzan Doubts ‘Big Market’ Indonesia Will Put Brake on Its Defense Investment

According to Barzan Holdings, Indonesia's defense investment will remain unaffected by economic hurdles.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED