September 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 Roadmap to Carbon-Neutral City,
masterplan Locally-Determined, and Lovable City

Business preparation including Proof of concept for advanced

in education and health sectors air mobility

Biodiversity assessment and wildlife Knowledge exchange on developing

protection framework livable city

Tracking Sustainable Development Creation of a smart and

Goals (SGDs) in Nusantara happy city in Nusantara

Research collaboration on Development of science-

sustainability based climate targets

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Nusantara’s Alignment with ESG Principles
ENVIRONMENT
Climate change mitigation
and adaptation, pollution
control, circular economy,
preservation of biodiversity
SOCIAL GOVERNANCE
Equality, inclusiveness,
Zero-tolerance to corruption,
human and community
staff diversity and integrity,
development, public safety
healthy working environment
and health
ESG Committee
for Nusantara
The Committee helps to align
Nusantara's planning and
decision-making with ESG
principles, enhancing the 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:
Innovation and Research
East 2:
5 Education
Services
West: Economic and 6 East 1:
Financial Center
Tourism and
2 4 Leisure
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Muara Jawa:
1 Fisheries & Agriculture
KIPP
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 in 2024
A fully-functioning city ecosystem in 1A
Center of government supported by key infrastructure and
facilities to support the livelihood of its residents
Presidential Palace

Co-working office Co-working office

for Ministries for Ministries

Central Bank
and Financial
Authorities

High-density mixed use

Offices and Business Area Point Zero (trade, services,
(SOEs and Private) such as shopping area)

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Nusantara as Sustainable Forest City
65%
Tropical forest created
through “reforestation”
Carbon-Neutral City by 2045
Launched at
COP27 (2022)
A scoping study to map
Nusantara's pathway to be
a carbon-neutral city
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25%
Highly-controlled urban
area to minimize carbon
footprint and emission
To be launched at
COP28 (2023)
A comprehensive strategy
and action plan to achieve
Nusantara’s net-zero target
 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
(September 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

INAUGURAL
GROUNDBREAKING
President Joko Widodo on 21
September 2023 inaugurated
the commencement of
construction projects led by a
consortium of 10 private sector
companies.

Second Groundbreaking is
scheduled in November 2023
involving 7 companies and
institutions.

Letters of Intent Non-Disclosure Intensive One-on-One

received from Agreements (NDA) Meetings held with
265 companies spanning
19 countries (approx.
41 signed with potential
investors
15 highly-potential
investors prior to
50% are foreign) affirming investment

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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: max. 30 years
(10 years more than
existing)
• More sectors can be
made eligible based on
IKN needs
Super tax
deduction vocation
• 250% gross income
deduction (50% more than
existing)
• Eligible competencies
adjusted based on IKN's
needs
Super tax deduction
R&D
• 350% gross income
deduction (50% more
than existing)
• Maximum annual burden
limit: 50% of net income
(10% more than existing)
• R&D to focus on IKN
development
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
for MSMEs Borne by the Government
• Turnover below USD • Applies to all
316,479 s not taxable employees domiciled at
IKN
• No income limit
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VAT and Sales Tax
on Luxury Goods
• In addition to existing, VAT is
not collected on property,
electronic vehincles, property
rental services, construction
services, and waste
treatment services
Customs–Duty Facility
• Additional import tax
exemption for investment
facilities
• Subject extension
• Import duty exemption
period at 4-6 years (from
existing 2-4 years)

*Assumption: 1 USD = IDR 15,166

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Investing in Nusantara: Support from Bina Karya
Establishment of 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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Investing in Nusantara: Incentives and Support
Ease of Doing Business and Incentives Establishment of
in Nusantara Authority-Owned Enterprise
(Government Regulation No. 12/2023)

Highlights:

Tax holidays for up to 10-year full tax

Up to 100% tax 30 years for exemption for global The entity will represent the
exemption to financial companies operating companies moving its
service companies in priority sector regional hubs to
Authority in commercial
Nusantara venture, designed to
expedite business-to-
Up to 100% tax Income tax deductible 0% corporate income business dealing with the
exemption for for investors tax rate for MSMEs in private sector
investment in priority conducting selected selected business
sectors R&D activities activities

Up to 95 years of land Investors’ Relations Team:

Value-added tax and
use permits for Income tax exemption
selected sectors and for Nusantara-based
import duties investasi@ikn.go.id
exemptions for
up to 80 years of company employees
building permit
priority items +62-822-1000-7860

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 “Some people make things happen,
some watch things happen,
while others wonder what has happened.”
~ Eleanor Roosevelt

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