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Japan Eyes Investment in Indonesia’s Green Capital City Project

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RRI


 
 
Japan has expressed strong interest in investing in the development of Indonesia’s new capital city, Ibu Kota Nusantar (IKN), particularly in its green and sustainable infrastructure. 

The project, located across parts of Penajam Paser Utara and Kutai Kartanegara regencies in East Kalimantan, continues to attract international attention as it moves into its next phases of development.

“IKN continues to offer investment opportunities focused on green and sustainable development,” said Head of the IKN Authority, Basuki Hadimuljono, during a visit to Sepaku, Penajam Paser Utara, on Monday, November 3, 2025, as quoted by antaranews.com.

The first and second phases of IKN’s construction are centered on building government offices and housing. Future development will expand into nine designated zones covering a range of economic and industrial sectors.

Basuki emphasized that industrial development within IKN will prioritize clean and green industries, in line with the sustainable development principles upheld by the IKN Authority. “The envisioned industries include agro-industry and fisheries, sectors that align with our clean and green approach,” he explained.

Among the interested investors is the Saga office of the Japan External Trade Organization (JETRO), which is exploring various opportunities for collaboration and investment in Indonesia, particularly in infrastructure and industrial zones within IKN.

Basuki welcomed JETRO’s interest, describing it as a potential starting point for concrete cooperation between Indonesia and Japan in realizing a modern, sustainable capital city. “JETRO has already reviewed the direction of IKN’s development,” he noted.

Tsuru Katsuya, CEO and Chairman of JETRO Kanzaki Industry Corp, echoed this sentiment, stating that Japan’s experience with urban density challenges makes IKN’s development particularly compelling. He added that the long-term vision behind IKN aligns well with the interests of Japanese investors.

JETRO is currently assessing key economic infrastructure, including industrial zones, transportation facilities, and other strategic assets, as part of its preparations to explore future investment opportunities in Indonesia, especially within the IKN project, Tsuru said.
 
 

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