New Capital development: Rp9.8 trillion projects to be signed soon
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 - Pembangunan IKN: Proyek Rp9,8 trilliun segera diteken
29 November 2022
By: Akbar Evandio and Muhammad Ridwan
18 construction contracts in New Capital City (IKN) Nusantara worth Rp9.8 trillion will be signed by the end of this year, adding to the contracts worth Rp15 trillion that have been signed previously.
Public Works and Housing (PUPR) Minister Basuki Hadimuljono said that the contracts would be signed from November to December.
“This month, [projects] that will be contracted include the construction of 19 retention basins,” he said at the work meeting with House of Representatives (DPR) Commission V on Monday (28/11).
Basuki said that the contracts for the construction of the retention basins were included in the activities of Water Resources Directorate General, and the contract value reached Rp500 billion.
Next, Highways Directorate General has four contracts worth Rp1.59 trillion to construct the access road to Mentawir Nursery and the logistics pier in IKN.
Meanwhile, Human Settlements Directorate General has 12 activities that will be contracted by the end of the year worth Rp7.08 trillion to construct the water treatment plant (WTP) and supporting buildings for Sepaku Drinking Water Supply System (SPAM), an integrated waste treatment plant, national axis stage I, as well as buildings and offices for coordinating ministries.
Housing Directorate General will receive one contract to construct official residences in Core Government Area (KIPP) in IKN worth Rp510 billion.
Meanwhile, 22 construction contracts in KIPP in IKN Nusantara worth Rp15.01 trillion that have been previously signed are showing various progress.
Basuki explained that activities that have been contracted in Water Resources Directorate General reached 4 activities worth Rp1.08 trillion. The construction of Sepaku Semoi Dam has reached 78.7%, Selaku River intake and transmission pipe network 47.2%, and raw water provision to Mentawir Nursery 45.9%.
From the Highways Directorate General, there are 12 contracts worth Rp8.71 trillion to construct Sepaku Ring Road with progress reaching 45.7% and IKN toll road as well as Western National Axis Road with progress reaching only 1%.
Besides that, the progress of ITCI Interchange-Riko Interchange Road preservation reaches 66.4%, Riko Interchange-Short Span Balang Bentang Island Bridge Road preservation 58.8%, and emergency panel bridge procurement stage 2 17.9%.
Meanwhile, there are five activities worth Rp4.66 trillion in Human Settlements Directorate General. The activities are land development preparation stages I and II with progress reaching 21.1% and 0.2% respectively as well as presidential complex and supporting buildings construction.
In the housing sector, there is one construction activity for construction worker housing that will construct 22 towers worth Rp570 billion. Currently, 7 towers are being constructed with progress reaching 36.8%.
Meanwhile, IKN Management Authority Chairman Bambang Susantono mentioned that the interest to invest in IKN, especially KIPP, reached 39 times of the land availability in the early stage of the IKN construction.
“That is larger than the interest to invest stated at the market sounding, which was 25 times [of the land availability],” he said after a limited meeting with President Jokowi at the Presidential Palace Complex yesterday.
The Head of State directed areas in IKN to be reopened to accommodate the interest of investors that were not accommodated in zone 1A, where the Presidential Palace and several ministries will be located.
“Now, we are reopening 1B and 1C,” Bambang stated.
He revealed that a more massive construction in IKN would commence in 2023.
