JAKARTA – The delay in the relocation of Civil Servants (ASN) to the Nusantara Capital City (IKN) until an unspecified date may impact infrastructure development and the operation of public facilities in the area.

ASN serves as IKN's captive market, or its main population. This statement was made by JLL Indonesia, a global real estate management company, during its Media Briefing today (5/2).

“We are still waiting for the ASN relocation, which— as we know— has been postponed. Once the captive market is there, only then will the demand for facilities arise, such as malls and educational institutions,” explained Yunus Karim, Head of Research at JLL Indonesia.

The delay in ASN's relocation is believed to be due to the inadequate number of available facilities. In January, President Prabowo Subianto stated that IKN would only be ready to serve as the political capital in 2028.

It is known that the IKN Authority (OIKN) has completed eight phases of groundbreaking by the end of 2024, which includes various investments from domestic and international private sectors.

In December, OIKN announced that the ninth groundbreaking phase would be scheduled for January 2025. However, as of February 2025, there has been no certainty regarding the timing of this phase.

Moreover, several projects from publicly listed companies, including the Pakuwon Nusantara Superbloc by PT Pakuwon Jati Tbk (PWON), Nusantara Warehouse Park by PT Wulandari Bangun Laksana Tbk (BSBK), and various state-owned bank facilities, have not yet been built by the end of 2024.

On the other hand, some projects that are ready to operate, like Hermina Nusantara Hospital by PT Medikaloka Hermina Tbk (HEAL) and Mayapada Nusantara Hospital by PT Sejahteraraya Anugrahjaya Tbk (SRAJ). (ZH)