Nusantara Capital Authority Signs Nine New Project Deals for Phase Two Development
Main Takeaways
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JAKARTA, Investortrust.id — The Nusantara Capital Authority has signed nine new project agreements as part of Phase Two of Indonesia’s new capital development in Penajam Paser Utara and Kutai Kartanegara, East Kalimantan.
“These agreements mark the start of the second phase of IKN construction,” said Danis H Sumadilaga, Acting Deputy for Facilities and Infrastructure at the Nusantara Capital Authority, during a press briefing in Sepaku on Saturday, June 28, 2025, as quoted by Antara.
The newly signed projects include seven major road infrastructure developments, the creation of new public sports and green spaces, and a revitalization plan for the Sepaku district.
Community-Led Urban Renewal
According to Danis, these initiatives go beyond traditional construction and include upgrading socially and economically active areas. The Sepaku revitalization, for example, required over a year of preparation due to the area's status as an existing community hub.
“The Sepaku area is not an empty site. It includes the bustling Pasar Sepaku market, which plays a central role in the local economy,” Danis said. The design for the new market was selected through a community voting process, reflecting IKN’s inclusive planning approach.
Construction will take place on village-owned land. During the project period, traders will be temporarily relocated, and will return to occupy the improved facility once construction is complete.
Green Public Spaces and Forestry Research
Danis also highlighted plans to convert the glamping area into a multifunctional public green space. “It will be developed into a functional and educational public park,” he said.
The site, which includes tropical forest zones, is envisioned as a recreational and educational space with strong potential to serve as a hub for forestry research and learning.
The 12.3-kilometer road development package is valued at approximately Rp 3.042 trillion ($186 million), while the combined sports facility and Sepaku revitalization project is worth around Rp 313.2 billion ($19.2 million). All projects are financed through the 2025 State Budget (APBN).