Malaysia Helps Indonesia Build the New Capital City – ‘Thank You, Pak!’
The mega-project of Ibu Kota Nusantara (IKN), Indonesia’s new capital city set to replace Jakarta as the center of government, has entered a crucial phase as Malaysia and China make massive investments amounting to RM40 billion (Rp132 trillion).
The announcement was made by Basuki Hadimuljono, the Head of the IKN Authority, who stated that this investment will be funneled through a Public-Private Partnership (PPP) scheme — a public-private financing model aimed at accelerating the development of the country’s key infrastructure.
🇲🇾 Malaysia and 🇨🇳 China Directly Involved
What is particularly striking is the direct involvement of two economic powers — Malaysia and China — in the development of the new city’s infrastructure.
Malaysia is represented by IJM Corporation Berhad, while China has sent China Harbour Engineering Co., Ltd. (CHEC) to participate in this mega-project. Both companies are expected to collaborate in forming a consortium or work individually depending on the scope of the tasks at hand.
“Investors from Malaysia and China have expressed their commitment, and they will help in the development of key infrastructure such as roads, apartments, and underground tunnels,” said Basuki.
What Exactly Will Be Built?
The RM40 billion fund will be used to develop critical infrastructure, including:
- Construction of government staff apartments
- Major roads in the government district
- Multi-Utility Tunnel (MUT) — an underground tunnel for utilities like water, electricity, and telecommunications lines
Basuki also informed that works already begun in 2022, such as toll roads, the main mosque, the vice president’s palace, and the wastewater treatment system, will continue.
IKN Expected to Be Completed Without Major Hiccups
With a strong planning structure and increasing foreign investment, Basuki is confident that the physical construction of IKN can be completed on schedule.
“If the program is well planned, it is now a matter of ensuring execution and supervision are carried out meticulously,” he said optimistically.
With Malaysia’s involvement in this high-value project, it not only strengthens bilateral relations but also opens new opportunities for the country’s engineering and development sectors in the international market.
By Tarziman — 25 Apr 2025, 03:18 PM
