IKN is the real embodiment of TOD
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 - IKN wujud TOD sesungguhnya
7 March 2023
Jakarta - The Public Works and Housing (PUPR) Ministry through the Housing Directorate General mentioned that Nusantara Capital City (IKN) is the real embodiment of transit-oriented development (TOD) that facilitates the mobility of the people from their homes to their places of work.
“If someone says that IKN is the true TOD, then they are correct. We must construct and realise it in a measured manner,” Housing Director General Iwan Suprijanto said at the TOD seminar in Jakarta recently.
Iwan also added that one of the key performance indicators (KPIs) in IKN development is the people being able to walk 10 minutes from their homes to office and public areas.
“By conducting spatial planning in IKN with the TOD concept,” he said as quoted by Antara.
According to Iwan, IKN is the solution as relocating the capital city to East Kalimantan must start with the creation of a new concept so that there will be no problems in the future.
So, IKN’s development concept can accommodate the TOD concept.
Previously, the property consultant Knight Frank Indonesia revealed that integrated vertical housing construction in IKN can be a role model for the development of compact cities in other regions in Indonesia.
Knight Frank Indonesia Senior Research Advisor Syarifah Syaukat said that the main purpose of constructing an integrated city is to make the city efficient so that mobility can be controlled, where integrated spaces with settlement and commercial functions are integrated with its supporting functions.
The housing construction concept in IKN follows the spatial planning plan that includes mixed-use areas and the demographic heterogeneity in IKN. Mixed-use areas refer to areas that accommodate various activities and functions in one built environment.
Demographic heterogeneity refers to a population mix that is based on characteristics, such as age, occupation, income, ethnicity, and race.
Developer investment
Meanwhile Real Estate Indonesia (REI) is ready to invest in property projects in IKN. Several large developers have conducted a market sounding to the government.
REI Central Board Secretary General Hari Ganie said that several developers have conducted a market sounding to the government and President Joko Widodo recently to develop and invest in IKN.
“Several REI members have committed and conducted a market sounding in front of the President at Ciputra Direct Investment to invest in IKN,” Ganie said at REI’s 51st anniversary event in Medan on Wednesday (1/3/2023).
Ganie mentioned that developers that have committed include Meltand, which is planning to build starred hotels, and Summarecon. There are also other developers that are cooperating with foreign investors from Korea and Japan.
Ganie said that he is currently waiting for the completion of the first stage of infrastructures that are tasked by the government, which include official housing and houses for civil servants (ASNs), flats, as well as offices.
“All are carried out in parallel. What we are waiting for is the completion of the first stage of infrastructures, such as houses for ASNs, flats, official housing, and offices that are tasked by the central government,” he said.
Developers are also waiting for the government regulation on ease of investment for the business world in IKN. This government regulation is crucial to accelerate investment, and for the business world.
