August 2023

Indonesia’s Smart
and Sustainable
Forest City
From Jakarta to Nusantara
1,236 kilometer
Samarinda
2 hours by air from Jakarta to Balikpapan
+ 90 minutes by road / 40 minutes by boat
Nusantara

Balikpapan

EAST KALIMANTAN

Nusantara

Jakarta

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Nusantara as Part of “Indonesia 2045” Vision

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Human development and Sustainable economic
technological development
advancement Boosting East Kalimantan’s
Cultivating world-class regional GDP up to 3 times by
talents with strong 2045 through economic
academic and digital diversification and
foundation transformation
INDONESIA
4 2045 3

Enhancing national Equitable development

resilience and governance Catalyzing eastern Indonesia’s
Establishing new regulatory regional GDP and
standards supported by strengthening overall domestic
investment and innovation value chain

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 Nusantara as Indonesia’s Active Contribution
in Three Global Campaigns

Biodiversity
Protecting and conserving
the Nusantara’s biodiversity Climate Change
including those that are
Nusantara is Indonesia’s
endangered through
first city that declares its
Nusantara Nature Positive
locally-determined
Plan to ensure wildlife
contributions (LDC) and
habitat’s existence and
it is instrumental in
security.
ensuring its carbon-
neutral goal by 2045 and
Sustainable helping to deliver
Development Goals national climate change
targets.
Nusantara will have its own
Voluntary Local Review
(VLR) to track SDGs
achievements at local level,
and accelerate the
attainment of UN 2030
Sustainable Agenda. 1
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Nusantara’s Knowledge Journey:
International Collaboration (selected)
Development of Nusantara’s smart
city masterplan

Roadmap to Carbon-Neutral City,

LDCs, and Lovable City

Business preparation including in

education and health sectors

Proof of concept for advanced

air mobility

Biodiversity assessment and

wildlife protection framework
Development of sustainable
forest city
Implementing SDGs
in Nusantara
Creation of a smart and
happy city in Nusantara
Planned International Collaboration for Nusantara
• Knowledge collaboration with other cities
• Development of tools for sustainable urban extensions and
land consumption controls
• Policy research on infrastructure, environment, and social
policies
• Water resources management
• Sustainable delta management
• Air quality management
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Nusantara’s Alignment with ESG Principles
ENVIRONMENT SOCIAL GOVERNANCE

Climate change mitigation Equality, inclusiveness,

and adaptation, pollution
control, circular economy,
preservation of biodiversity
Zero-tolerance to corruption,
human and community
staff diversity and integrity,
development, public safety
healthy working environment
and health

ESG Committee for Nusantara

Role: To align Nusantara’s planning and decision-making processes with ESG principles,
and therefore contributing to city’s sustainability and credibility
→ First Indonesia’s city to implement ESG standards

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Nusantara’s Scope of Development
and Connectivity Samarinda

Total Area
(Land and Water)
324,332 Ha

Land Area
256,142 ha

KIKN KP-IKN
Buffer Area
Core Urban
Area
199,962 ha Existing toll road:
56,180 ha Balikpapan – Samarinda

KIPP
Government Core
Area

6,671 ha Water Area

68,188 ha
VVIP Airport

New Toll Road:

Balikpapan – Nusantara’s Core Area
Balikpapan
Travel time: 30-40 minutes 7
Nusantara’s Nine Samarinda

Economic Generators
North:
Education Services

East 2:
5 Innovation
and Research

West: Economic and 6 East 1:

Financial Center
Tourism and
2 4 Leisure
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Muara Jawa:
KIPP Fisheries & Agriculture
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3 8 Kuala Samboja:
South: 7 Agriculture Industry
Renewable
Energy Area
Simpang Samboja:
Agro-commodities,
Trade & Logistic

Balikpapan

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Nusantara’s Development Phases

I II III IV V

2022–2024 2025–2029 2030–2034 2035–2039 2040–2045

Transfer of Strengthen Nusantara’s Scale up education, Complete construction of all Consolidate
priority core areas; Expand health sectors and major infrastructure, bolster reputation as “The
government housing, office, and high-tech sectors three-city ecosystem World Class City
offices commercial zones (Nusantara, Balikpapan, for All”
Samarinda)
Population: Population:
~260,000 ~1,911,000

By 2024: Developing
a fully-functioning
Sub-area 1A city ecosystem in an
area of 921 ha. in 1A:
2,876 ha
Center of government
Sub-area 1B supported by key
infrastructure and
facilities
Sub-area 1C

KIPP

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Nusantara’s
Development
Principles Co-working offices
for Ministries

Offices and Business Area

Green (SOEs and Private)

Smart

Inclusive

Resilient
Point Zero

Sustainable

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Presidential Palace

Co-working offices
for Ministries

Central Bank and

Financial Authorities

Nusantara in 2024
A fully-functioning city
ecosystem: Center of
government, supported by
key infrastructure and
facilities to support the
livelihood of its residents
High-density mixed use
(trade, services incl.
shopping area)

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Nusantara as Sustainable Forest City
65%
Tropical forest created
through “reforestation”
• Green frameworks: Carbon-neutral city
roadmap (launched at COP27), smart-city
framework, and sustainable energy
management framework, etc.
• Green infrastructure: Plant nurseries,
immersive tunnel, animals’ corridors and
bridges, etc.
• Collaboration with communities and civil
society on forest protection by combining
local wisdom (“cultural forest”) and
international best practices.
Carbon-neutral city by 2045
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25%
Highly-controlled urban
area to minimize carbon
footprint and emission
• Design: “10-minute city”; “sponge city”;
city ecosystem that supports pedestrians,
cyclists, and public transport users; etc.
• Smart city instruments: IoT-enabled
infrastructure, smart meters, smart water
and waste management, advanced
mobility, healthy building, etc.
• Policies: 100% renewable energy mix by
2045, green certification for buildings,
electric vehicles, carbon trading, open
data, etc.
Nusantara Nature Positive Plan
1 Reduce deforestation.
Maintaining existing forest and ecosystem.
Biodiversity conservation.
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Protect and enhance biodiversity.

3 Sustainable forest and agriculture

management.
Managing forest or agroforestry sustainably
Enhancing carbon stock.
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Restoring forest to increase carbon stocks.
Community involvement. Recognizing,
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engaging, and improving the welfare of
indigenous and local communities.
Landscape and Seascape Approach.
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Develop approaches based on
environment’s carrying capacity.

Launched at COP27 in Egypt (2022) To be launched at COP28 in Dubai (2023):

A preliminary study that maps A comprehensive strategy and action
Nusantara's pathway to be a to achieve Nusantara’s net-zero
carbon-neutral city target by 2045

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 Imagining Nusantara in 2045
Advanced Air Mobility: Autonomous Mobile
An urban air transport Drones and Robots
Autonomous, to support the city’s Comprehensive
system for 5 persons Integrated
On-Demand logistics system Electric Vehicle
Public Transport Command Center Ecosystem

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AI-powered, fully Smart Building Centralized Utility
digital One-Stop IoT-based Air Quality Ecosystem Advanced Management using
Services for Monitoring and Commuter Smart Meter Systems
Residents Control System Information System

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 Smart Farming Natural Disaster
A city fully powered Ecosystem: Early Warning
Forest Management
by renewable energy, Precision Farming, IoT-based System
System: Fire and
optimized by smart Urban Agriculture, Water Quality
Climate Censors,
grids and meters Smart Agroforestry Monitoring and
Hotspot Monitoring,
Control System
Firebreak System

Biodiversity and
Carbon Stock
Monitoring System

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Development Progress: Infrastructure
(August 2023)

Presidential Palace and the Ceremonial Plaza

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National Axis (Sumbu Kebangsaan)

Multi-utility tunnels Workers’ Housing Compounds

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Dam to supply Nusantara’s raw water Plant nurseries

Water intake and piping system Water reservoir

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 Development Progress:
Community Re-skilling and Up-skilling

Business Skills Training for MSMEs Coffee-making Class

Cooking Class Sewing Class Hydrophonic Farming

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 Development Progress:
Digital Empowerment

“Coding Mom” class

Computer literacy for children “Solar Mom” workshop Podcast training

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 Investors’ Interest: A Snapshot
As of 17 August 2023

265 41 15

Letter of Intents received Number of Number of

from companies in 19 countries Non-Disclosure Agreements One-on-One Meetings held with
(around 50% are foreign-based) (NDA) signed with tpotential potential investors prior to
investors affirming investment

Number of investors Breakdown:

that have been • Hotels (2)
progressing toward • Office mixed-use (2)
deal closing,
FLAGSHIP • Medical facility (1)
PROJECTS 8 including signing
agreements with • Education (1)
Bina Karya, the • Leisure and sports (1)
Authority-owned • Mixed-use incl. parks,
enterprise gallery, green spaces (1)

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 Investing in Nusantara: Investment Opportunities
Top
Priority

(short-
term)

Renewable Energy Transportation Housing Water Treatment and Telecommunication

Waste Management Infrastructure

High
Priority

(long-
term)

Township, Education and Medical Facilities Commercial and Technology

Transit-oriented Research Facilities Industrial Areas
Development

Areas of investment Scale of investment Types of investment

• Hardware: Physical • Project-specific • Direct investment

infrastructures
• Software: Digital
operating system and
ecosystem
• Brainware: Capacity
building, capacity
supplement
investment • Public-private partnership:
• Area developer: User payment or availability
Developing a large-scale payment schemes (with
investment “bundle” government’s support e.g.,
consisting of multiple guarantee, viability gap fund,
projects partial construction support,
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There are currently
300 investment
packages available •
for investment in •

Nusantara •

•
•

• 7

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Investing in Nusantara: Incentives
Ease of Doing Business and Incentives in Nusantara
(Government Regulation No. 12/2023)
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Tax Holiday
• Investment limit: $659,369
(10x lower than existing)1
• Term: maximum 30
years (10 years more
than existing)
• More sectors can be
made eligible based on
IKN needs
Super tax Super tax deduction
deduction vocation R&D
• 250% gross income • 350% gross income
deduction (50% more than deduction (50% more
existing) than existing)
• Eligible competencies • Maximum annual burden
adjusted based on limit is 50% of net
IKN's needs income (10% more than
existing)
• R&D to focus on IKN dev't
Super tax deduction
donation
• 200% gross
income deduction
(2x than existing)
• No limit to the previous
year's net income (as
long as not cause a tax
loss)

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Financial income tax 0% Income Tax Article 21 VAT and Sales Tax Customs–Duty Facility
for MSMEs Borne by the Government on Luxury Goods
• Turnover below USD • Applies to all • In addition to existing, VAT is • Additional import tax
316,4791 is not employees domiciled not collected on property, exemption for investment
taxable at IKN EV, property rental facilities
• No income limit services, construction • Subject extension
services, and waste • Import duty exemption
treatment services period at 4-6 years (from
existing 2-4 years)

*Assumption: 1 USD = IDR 15,166

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Investing in Nusantara: Role of Bina Karya
Establishment of Bina Karya, the Authority-Owned Enterprise

• P.T. Bina Karya is a

business entity with a
similar structure to a state-
owned enterprise but
reports to the Authority.
• The entity will represent
the Authority in commercial
venture, designed to
expedite business-to-
business dealing with the
private sector.

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Nusantara National Capital
Authority

Jakarta
Menara Mandiri 2, 27th floor
Jalan Jenderal Sudirman 54-55
South Jakarta

East Kalimantan
Pantai Mentari Compound
Jalan Mulawarman 6
Manggar, Balikpapan

Email: investasi@ikn.go.id

WhatsApp:
+62-811-811-28-888
+62-811-811-58-888

Web: www.ikn.go.id

Instagram & Twitter: @ikn_id