New Capital: IKN physical progress ready to climb up
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.
Bisnis Indonesia - Ibu kota baru: Progres fisik IKN siap mendaki
26 June 2023
By: Afiffah Rahmah Nurdifa
Jakarta - The Public Works and Housing (PUPR) Ministry predicts that the physical progress of Nusantara Capital City (IKN) development in East Kalimantan will increase rapidly between July-August 2023, following the signing of the second batch of contracts.
IKN Infrastructure Development Task Force Chairperson Danis Hidayat Sumadilaga said that the physical progress of the second phase has yet to be seen as the contracts were only signed several days ago. However, he ensures that he will report the progress next month.
“As they are only contracts, they are not calculated. On average, the progress is still at zero. Several contracts that were signed yesterday have just imported equipment. We will evaluate the progress in July or August,” he said to Bisnis recently.
According to him, one of the construction packages that will be signed in July is the construction of 47 flats for civil state apparatus (ASN) and defence and security (Hankam) officers. Both housing projects has a total of six packages worth Rp9.4 trillion that use multiyear contracts from 2023 to 2024. Meanwhile, this year’s allocation reaches Rp3.7 trillion.
There are currently 36 construction packages remaining in the second phase. Four contracts have been signed, and the rest will be signed between June-August 2023.
According to him, the Public Works and Housing (PUPR) Ministry is accelerating the completion of basic infrastructures in IKN in East Kalimantan.
Danis explained that, out of 75 basic infrastructure construction packages in IKN worth Rp46 trillion, 39 packages in the first phase have been signed as of April 2023.
“The first batch will still progress until the middle of June. The monitoring will take around 2 weeks until 15 June, which is around 31%,” Danis said.
Danis also ensures that the PUPR Ministry will tighten the construction safety management system (SMKK) in infrastructure construction in IKN.
He said that the SMKK would be implemented on all infrastructure construction in Indonesia, especially on infrastructures in IKN.
“As the construction scope in IKN is expansive, the supervision is layered. So, each construction is monitored by at least four levels,” Danis said.
For example, he mentioned that the construction package of Sumbu Kebangsaan would be under the supervision of the contractor, the construction management, the PUPR Ministry, and the key construction management specifically for the construction in IKN.
The SMKK will be implemented on all infrastructure construction in IKN, including on construction planning, land procurement, construction implementation, and SIDLACOM (Survey, Investigation, Design, Land Acquisition, Action Programme, Construction, Operation, Maintenance).
According to him, layered supervision is required on all construction activities to maintain security, safety, health, and construction sustainability in IKN development.
“The implementation principle of the SMKK is related to quality. How to construct the infrastructures according to plan, on time, and on quality,” he stated.
PUPR Minister Regulation Number 10 of 2021 on Guidelines on Construction Safety Management System regulates that each construction service performance, service user, and service provider must meet the security, safety, health, and sustainability standards.
Danis said that PUPR Minister Basuki Hadimuljono gave a direction to ensure that construction workers and all parties involved in the field fulfil the work health and safety aspect.
Moreover, the PUPR Ministry is encouraged to focus on the technical safety aspect, the eco-friendly construction aspect, and the good communication aspect with locals to control the social impact.
Based on the data of Construction Development Directorate General of the PUPR Ministry, 2,962 construction workers in IKN have undergone training based on their job title. In detail, 2,146 construction workers undergone training in 2022 and 816 construction workers undergone training until 26 May 2023.
The Construction Development Directorate General routinely monitors the SMKK implementation that covers material checking, function feasibility testing, the worker health and safety principle that checks the health of workers, and personal protective equipment utilisation.
“Not only workers, but also the safety of the public and locals. For example, how transportation management is regulated. Including the four environmental safety [aspects] that include a nursery for plant seeds that will be planted along the IKN access toll road that is currently being constructed,” he said.
Danis also said that the SMKK was implemented on the construction worker training programme in IKN.
“For the construction safety management system in IKN, the officer of each package is called Key Construction Occupational Health and Safety Expert or Mid-Level Construction Health and Safety Expert. They are truly supervising [the projects] so that the construction process will not only prioritise safety, but also quality and sustainability,” he explained.
PUPR Minister Basuki Hadimuljono previously stated that the PUPR Ministry had spent Rp24.16 trillion for the development of IKN from 2020 to March 2023, especially for batch I.
For the second batch, the PUPR Ministry is preparing to tender 37 packages for 2023-2024 worth Rp21.41 trillion. Based on the calculation, IKN development will cost around Rp62.7 trillion for 76 construction packages from 2020 to 2024.
Basuki explained that construction workers in IKN reached 8,000 workers with local workers reaching 30% who were provided trainings and workforce certificates.
