Construction SOEs to pursue Rp18tn New Capital projects
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - BUMN karya berburu proyek IKN Rp18 T
16 January 2023
Jakarta – Four construction SOEs (state-owned enterprises) will hunt for construction packages worth Rp18 trillion from New Capital City (IKN) Nusantara this year. The four SOEs are PT Waskita Karya (Persero) Tbk (WSKT), PT Pembangunan Perumahan (Persero) Tbk (PTPP), PT Adhi Karya (Persero) Tbk (ADHI), and PT Wijaya Karya (Persero) Tbk (WIKA).
IKN Infrastructure Development Implementation Task Force Chairperson Danis H. Sumadilaga stated that the Public Works and Housing (PUPR) Ministry had prepared a program to develop basic infrastructures in IKN from 2022 to 2024 for Rp43 trillion. From that amount, 29 construction packages worth Rp25 trillion have been contracted.
“Contractors that have won the most projects are construction SOEs thanks to the large value of the contracts. So, it is in line with their classification,” Danis said recently.
In parallel with the packages tendered, Danis believes that construction SOEs will continue obtaining large portions through their participation in tender processes. Moreover, specifically for basic infrastructure construction in IKN, the government will focus on domestic contractors or investors due to regulations.
So, this is a big opportunity for state-owned construction companies to amplify their new contract realisation from IKN. The value of construction packages that have been contracted reaches Rp25 trillion, while the total value of the construction packages programmed by the PUPR Ministry reaches Rp43 trillion. This means that construction packages worth Rp18 trillion still remain to be obtained by construction SOEs.
Regarding the implementation, Danis mentioned that there were five projects being tendered that are expected to be completed in 2023, which will increase the value of contracted construction packages to Rp30 trillion.
In response, Adhi Karya Corporate Secretary Farid Budiyanto said that Adhi realised that several tenders for IKN projects with fantastic value will be tendered by the government soon. Hence, IKN projects will continuously be targeted by the company to increase their new contract realisation in 2023.
“IKN is one of the targets that we pursue in 2023. Hopefully, we can obtain more new contracts than last year,” Farid said to Investor Daily recently.
According to their plan, the government through the PUPR Ministry will realise the construction of the IKN megaproject in five stages. In the first stage (2022-2024), the government will focus on basic infrastructure construction, which includes infrastructures for drinking water, electricity, ICT, as well as waste and wastewater treatment.
Then, in the second stage (2025-2029), the government will focus on constructing public transportation facilities and expanding settlements for state civil apparatus and TNI (Indonesian National Armed Forces)/Polri (Indonesian National Police). In the third stage (2030-2034), infrastructures that will be built include industrial estates, economic clusters, and digitalisation centres.
