PUPR and Japan strengthen the New National Capital City development cooperation

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 - PUPR dan Jepang perkuat kerja sama pembangunan IKN

18 November 2022

 

The Public Works and Housing (PUPR) Ministry and the Japanese government are strengthening their cooperation on New Capital City (IKN) Nusantara construction. This is marked with the bilateral meeting among PUPR Minister Basuki Hadimuljono, Land, Infrastructure, Transportation and Tourism Deputy Minister of Japan Mizushima, and Japan Ambassador to Indonesia Kanasugi Kenji as the last event of the G20 Summit in Bali on Wednesday (16/11/2022).

“Thank you to the Japanese government, especially MLIT (Ministry of Land, Infrastructure, Transportation, and Tourism) and JICA that have helped us by sending several experts to supervise the ongoing IKN infrastructure construction,” Minister Basuki said in his official statement on Thursday (16/11/2022).

Minister Basuki revealed that the PUPR Ministry had commenced basic infrastructure construction in IKN at the start of September 2022, which included the construction of toll roads and national roads, raw water provision, housing for IKN construction workers, as well as land development.

Related to the possibility of investor participation, Minister Basuki affirmed that, in accordance with the direction of President Jokowi to accelerate IKN construction, foreign investors could also be involved. For example, to construct hospitals, schools, markets, and other infrastructure.

“Japanese businesses are expected to invest in IKN construction,” Minister Basuki added.

Deputy Minister Mizushima said that Japan was interested in the IKN project. Based on the request of the Land, Infrastructure, Transportation and Tourism Minister, JICA has sent a letter to IKN Infrastructure Construction Implementation Task Force Chief Danis Sumadilaga to conduct a survey in IKN at the end of November.

Related to the cooperation on the construction of Patimban Access toll road, Minister Basuki explained that the progress was going according to plan. Tender processes for consultants and implementing contractors will be carried out in parallel, where construction is planned to commence in April 2023 to be completed at the end of 2024.

Lastly, Minister Basuki asked for support from Japan to hold the 10th World Water Forum (WWF) that will be carried out in May 2024 in Bali.

“We are inviting MLIT and JICA to participate in the implementation of WWF as Japan was the host in 2003 in Kyoto,” Minister Basuki explained.

Contact us

Julian  Smith

Julian Smith

Director, PwC Indonesia

Tel: +62 21 509 92901

Agung  Wiryawan

Agung Wiryawan

Partner, PwC Indonesia

Tel: +62 21 509 92901

Follow PwC Indonesia