ADB Disburses US$ 2.4 Million to Fund the Development of the New Capital City

IKN NUSANTARA - JAKARTA. The Asian Development Bank (ADB) has expressed its commitment to assist Indonesia in supporting the development of the Nusantara Capital City (IKN) in North Penajam Paser, East Kalimantan (Kaltim).

The ADB Director in Indonesia, Jiro Tominaga, stated that they have provided technical assistance for the development of IKN amounting to US$ 2.4 million. This fund was disbursed through various scopes of cooperation.

"We are very concerned about the development of this new capital. We have supported them since the establishment of IKN in the form of technical assistance," said Jiro in a Media Briefing in Jakarta, Thursday (14/12).

The funding will be focused on three pillars. First, planning and design with the aim to ensure land use and spatial planning support the vision of IKN Nusantara to become a smart and sustainable forest city.

Secondly, minimizing impact by conducting basic environmental and social surveys and implementing strict regulations and protections to minimize the negative impact of the development of IKN Nusantara.

Thirdly, mobilizing finance by developing policies and frameworks for investment in the new capital.

"You know, in terms of helping them think about some plans to develop this long-term project," he said.

For your information, the ADB has committed to helping Indonesia plan its new capital, Nusantara, as an inclusive and carbon-neutral city.

The ADB will assist the Nusantara Capital City Authority (Otorita IKN) in designing the new city, assessing its potential environmental and social impacts, and raising financing from government and private sector sources to support the city's development.

The Nusantara IKN Authority, as a government agency tasked with planning and developing the new capital, will also oversee the transition process of the government to Nusantara and then become the manager of the city.