Nusantara unlocks golden opportunities for Sabah investors, businessmen
01 Dec 2024
The development of Indonesia’s new capital, Nusantara or Ibu Kota Nusantara (IKN), represents one of Southeast Asia’s most ambitious urbanization projects, with far-reaching implications for regional economic growth and investment.
For Sabah’s investors and businessmen, IKN presents a golden opportunity to engage in diverse sectors ranging from infrastructure to green energy, real estate and technology.
An overview of IKN development
Spread over an expansive 322,429 hectares, IKN is envisioned as a sustainable and futuristic capital that balances urbanization with environmental conservation. The land area is divided into:
1. Core Government Central Area (KIPP): Spanning 6,671 hectares, this zone includes key government offices, the presidential palace, and other administrative buildings.
2. Urban Development Area (KIKN): Covering 56,159 hectares, this zone integrates educational, healthcare, research and commercial hubs.
3. Sustainable Development Zone (KPIKN): Spanning 196,501 hectares, this zone focuses on ecological preservation and sustainable urban development.
IKN also includes an additional 69,769 hectares of marine areas for public and logistical use, further solidifying its vision as a multifaceted capital.
Latest milestones in IKN construction
The construction progress in IKN underscores Indonesia’s commitment to its development goals. As of late 2024:
1. Infrastructure Progress:
• The presidential palace and national plaza are nearing completion with progress rates of 95.4% and 94.3%, respectively.
• Key highways and logistic ports have achieved 100% completion in their initial phases, ensuring efficient connectivity.
• The first phase of the solar power plant (10 MW) has been completed, with an additional 40 MW underway, reflecting IKN’s commitment to renewable energy.
2. Civil Development:
• Forty-seven high-rise residential towers for civil servants and security forces are under construction, with several already completed.
• Modern healthcare facilities, including hospitals specializing in oncology, cardiovascular care, and general medicine, are operational or in advanced stages of construction.
3. Green Initiatives:
• Significant investments have been made in water treatment plants, waste management systems, and the creation of expansive green spaces.
• The Sepaku Semoi Dam has been completed, ensuring long-term water security for the city.
Investment opportunities for Sabah entrepreneurs
For Sabah investors and businessmen, IKN offers a unique chance to leverage their expertise and resources in several high-potential sectors:
1. Infrastructure Development
IKN’s ongoing and planned infrastructure projects require expertise in:
• Road and bridge construction.
• Water supply systems and sewage treatment.
• Logistics facilities, including warehouses and transport hubs.
Sabah’s construction firms, equipped with experience in large-scale projects such as the Pan Borneo Highway, are well-positioned to contribute to these initiatives.
2. Renewable Energy
With an emphasis on green energy, IKN is actively developing solar, wind and hydropower projects. Sabah’s expertise in renewable energy, particularly in solar and micro-hydro projects, aligns with IKN’s sustainable development goals. Partnerships with Indonesian stakeholders could unlock cross-border opportunities in this sector.
3. Real Estate and Housing
The rising demand for residential, commercial and mixed-use properties in IKN presents lucrative opportunities. Sabah developers can collaborate with Indonesian counterparts to deliver housing solutions that cater to civil servants, expatriates and private sector employees relocating to the capital.
4. Healthcare and Education
With plans for advanced medical facilities and educational institutions, Sabah’s healthcare providers and academic institutions can explore joint ventures in:
• Hospital management and specialized care.
• Establishing international schools and vocational training centers.
5. Technology and Innovation
IKN aims to be a smart city with state-of-the-art digital infrastructure. This opens doors for Sabah’s tech entrepreneurs to offer solutions in:
• Smart transportation and energy grids.
• E-governance platforms and cybersecurity.
• Artificial intelligence and IoT applications.
6. Hospitality and Tourism
Given its MICE (Meetings, Incentives, Conferences, Exhibitions) facilities and green spaces, IKN is poised to become a hub for business tourism. Sabah’s hospitality brands and tour operators can expand their reach by investing in hotels, resorts, and event management services in IKN.
Policy support and collaboration opportunities
Indonesia’s government has introduced investor-friendly policies to encourage private and international investments in IKN. These include:
• Tax holidays and incentives for priority sectors.
• Simplified land acquisition and project approval processes.
• Public-private partnership (PPP) models to facilitate joint investments.
Sabah’s businessmen can also leverage regional platforms such as ASEAN to strengthen trade and investment ties. Collaborative efforts with Indonesian businesses, facilitated through trade missions and forums, can further enhance bilateral economic engagement.
The strategic advantage for Sabah
Sabah’s geographical proximity to Kalimantan, combined with its established industries in agriculture, energy and construction, positions it as a key partner in IKN’s development. Furthermore, Sabah’s membership in the BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area) provides a strategic framework for cross-border trade and collaboration.
Conclusion: Building the future together
The development of IKN signifies more than just the creation of a new capital; it represents a paradigm shift in sustainable urbanization and regional integration. For Sabah’s investors and businessmen, this is a once-in-a-lifetime opportunity to participate in shaping a transformative project that promises mutual economic growth.
By leveraging existing strengths, fostering strategic partnerships and embracing innovation, Sabah’s business community can play a pivotal role in IKN’s success story. The golden opportunities in IKN await those ready to seize them — the time to act is now.
Source: Borneo Post
