Integrated circuit packaging system with interconnects and method of manufacture thereof

An integrated circuit packaging system comprising;

• a post formed of multiple plating layers having a base end with an inward protrusion, a connect riser, and a top end opposite the base end, wherein the connect riser is an integral part of the base end;
• an integrated circuit device having a perimeter end facing the connect riser and the inward protrusion,
• a bond wire directly on the inward protrusion and the integrated circuit device;
• an encapsulation over the integrated circuit device, the bond wire, the inward protrusion, and around the post, a portion of the base end and the top end of the post exposed from the encapsulation, wherein the post includes a conductive protrusion extending from the base end and a portion of the conductive protrusion is exposed from the encapsulation, wherein the portion of the conductive protrusion exposed from the encapsulation is covered with a standoff contact, and wherein the encapsulation includes a component region in the encapsulation, the component region exposed from a base surface of the encapsulation;
• and
• a component protrusion that fills the component region exposed from the base surface of the encapsulation, the component protrusion extends above the base surface, wherein the component protrusion include a component contact, and wherein the component contact is coplanar with the standoff contact.