National strategic project: When SOEs hunt for IKN 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.
Bisnis Indonesia - Proyek strategis nasional: Kala BUMN berburu proyek IKN
16 May 2023
By: Afiffah Rahmah Nurdifa & Muhammad Ridwan
The government is continuously accelerating the construction of Nusantara Capital City (IKN) in East Kalimantan by focusing on basic infrastructures, which include housing for state civil apparatus.
Tender after tender for projects in IKN in East Kalimantan are continuously held by the Public Works and Housing (PUPR) Ministry.
Recently, the technical ministry is targeting to build flats for state civil apparatus (ASN) in IKN starting from July 2023.
IKN Infrastructure Development Implementation Task Force Chairperson Danis H. Sumadilaga said that the flats were part of the infrastructures that will be constructed using funds from the state budget (APBN). Until this month, he revealed that the flats project is still in the tender stage.
“It is still being tendered. There are 47 towers for ASN, TNI, and Polri. Hopefully, it can commence [construction] in July,” he said to Bisnis on Saturday (13/5).
On the PUPR Ministry’s official LPSE site, there are four tenders for the construction of the ASN flats. The ASN 1 flat is worth Rp1.7 trillion. The PUPR Ministry is also tendering the construction of the ASN 2 flat that is worth Rp1.5 trillion, the ASN 3 flat that is worth Rp1.1 trillion, and the ASN 4 flat that is worth Rp1.5 trillion.
In line with the schedule, the four project tenders were commenced by the PUPR Ministry on 19 April 2023, and they are set to be completed by 28 July 2023.
Besides the construction of flats for ASN, the PUPR Ministry is also tendering the construction of flats for Paspampres (Presidential Security Detail).
Nine towers that have a contract value of Rp1.8 trillion are planned to be constructed for Paspampres in the Hankam Precinct area in IKN. The tender for the construction of the flats for Paspampres has commenced since 18 April 2023, and it is set to be completed by 28 July 2023.
Moreover, the PUPR Ministry is also tendering the construction of flats for Polri and State Intelligence Agency (BIN) in IKN.
The tender that is worth Rp1.5 trillion has started since 18 April 2023, and it will use the 2023-2024 APBN.
Not only flats, a tender for road construction in KIPP in IKN is also being held. The project is divided into the district road (feeder) in IKN worth Rp1.32 trillion and the access road to the mosque in IKN and the logistics pier worth Rp690 billion.
Danis revealed that projects that are still in construction until May 2023 were Sepaku Dam and Sepaku intake.
Besides that, other constructions that are currently focused on include the completion of the State Palace, the Presidential Office, and the Coordinating Ministry Office that have reached around 29%.
Besides carryover contracts from last year, he has also commenced several new infrastructure projects in IKN.
According to him, the projects are the drinking water provision system infrastructure and the wastewater processing installation. “The contracts are relatively new, they are still early,” he revealed.
Still intensive
Intense tenders from the PUPR Ministry are directly responded by several domestic contractors. Moreover, construction state-owned enterprises (SOEs) are continuously hunting for projects in IKN.
Until now, PT Adhi Karya Tbk (ADHI) and its subsidiary, PT Adhi Commuter Properti Tbk (ADCP), are collectively targeting several new projects that are tendered by the PUPR Ministry.
ADHI Corporate Secretary Farid Budiyanto said that his company would target all potential construction contracts, including new projects in IKN.
“Contracts from IKN are expected to continue to increase to support the company’s performance growth,” Farid said to Bisnis on Monday (15/5).
He is reluctant to provide further details regarding what kind of projects that his company is targeting in IKN. However, Farid affirmed that ADHI has obtained seven projects worth Rp2.9 trillion.
Moreover, they are currently working on seven infrastructure and building projects in IKN, namely Balang Island Bridge Fender, Balang Island Bridge Duplication, Kariangau-Karangjoang Toll Road Segment 3A, Land Development Sub WP 1B, landed housing for ministers, construction worker housing, and Sepaku Intake Infrastructure and Pipe Network.
On the other hand, PT Adhi Commuter Properti Tbk (ADCP) Corporate Secretary Bayu Purwana said that he would open the potential to expand projects in IKN.
Until now, he stated that ADCP was still focused on developing property that implement the transit-oriented development (TOD) concept.
Bayu said that he was still focused on Greater Jakarta that is densely populated and requires accessibility for high mobility. By targeting TOD housing that are close to Jabodebek LRT stations, he hopes that they can be the answer for people with high mobility.
“In the future, if there is a similar problem, ADCP will certainly expand to support development to the area, including IKN,” Bayu said.
Meanwhile, PUPR Ministry Spokesperson Endra S. Atmadjaja said that the government was focused on completing the government’s portion to convince investors to invest in IKN.
By realising construction in the existing field, Endra revealed that it would be a reference for investors regarding the seriousness of the government in constructing IKN.
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