IKN airport construction begins, investors will not want to be late

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 - Bandara di IKN dibangun, Investor jangan terlambat

2 November 2023

By: Tri Murti & Moh. Said Mashur

 

Jakarta - Several infrastructures are starting to be constructed in Nusantara Capital City (IKN). After the toll road, an international airport will follow suit. Its construction commenced on Wednesday (1/11/2023), marked by the groundbreaking by President Joko Widodo. Simultaneously, the construction of an international school and hospital also commenced. The President is asking domestic investors to invest in IKN before it is too late.

“When both [projects] and the airport are completed, I believe late investors in Nusantara will be left behind,” Jokowi said in IKN, East Kalimantan on Wednesday (1/11/2023).

Public Works and Housing (PUPR) Minister Basuki Hadimuljono, State-owned Enterprises (SOE) Minister Erick Thohir, Agrarian and Spatial Planning Minister Hadi Tjahjanto, IKN Authority Head Bambang Susantono, Acting East Kalimantan Governor Akmal Malik, Land Bank Head Parman Nataatmadja, and Air Transportation Director General Maria Kristi also attended the event.

The President said that the airport was crucial to anticipate increased activities in IKN and mobility of people and goods from and to IKN.

The IKN airport that is located in Penajam District in North Penajam Paser Regency in East Kalimantan is a special airport that will be used to support government activities in IKN and connectivity in Nusantara. The airport is located 23 km from the zero point in IKN and 120 km from Balikpapan.

Jokowi said that the construction of the toll road that connects Balikpapan to Nusantara was set to be completed in June 2024. Travel time from Balikpapan to Nusantara will only take more or less 45 minutes.

“The airport will make IKN more open and improve connectivity to make IKN more reachable from everywhere else. I believe that the IKN airport will improve the competitiveness of IKN, boost economic growth, increase regional development, and accelerate IKN development that we are currently processing,” the President said.

According to the President, the route from Balikpapan to Nusantara is still taking the long way round, so it takes around 2 hours.

“This morning, I tried the new toll road, travel time took more or less 45 minutes,” Jokowi said.

Jokowi explained that the toll road that is currently in construction is wide enough to facilitate travel to IKN. Similar to Jagorawi Toll Road, the toll road that will connect Balikpapan to Nusantara will have three lanes.

The same goes for the airport in Nusantara that carried out groundbreaking today. Jokowi mentioned that the project was planned to be completed in June next year. The project costs Rp4.2 trillion.

“It will be completed around June 2024. It will be able to be landed by wide-body aircrafts,” Jokowi said.

During the occasion, Transportation Minister Budi Karya Sumadi said that transportation infrastructure construction in North Penajam Paser Regency was the government’s commitment to realising balanced development through the Indonesia-centric paradigm.

“The airport construction is expected to boost economic growth and tourism growth in East Kalimantan,” the Transportation Minister said.

The overall size of the airport in IKN reaches 347 ha with the runway spanning 3,000 x 45 metres, Taxiway A spanning 180 x 30 m, Taxiway B spanning 180 x 30 m, and the apron reaching 102,150 m2. The total size of the VVIP and the VIP terminals reach 7,352 m2.

The airport is set to serve flights in July 2024 and to fully operate in December 2024. “Later, the largest aircrafts that can be accommodated by the airport are Boeing 777-300ER and Airbus A380,” the Transportation Minister said.

The construction will be carried out using a multiyear contract from fiscal years 2023 to 2024. The construction of the land side facilities is carried out by the Transportation Ministry, while the air side facilities are constructed by the Public Works and Housing (PUPR) Ministry.

The concept design of IKN airport’s terminals will mix local elements that highlight Kalimantan’s culture, but they will remain modern and nature-oriented.

Furthermore, Jokowi believes that when the airport and the toll road are completed, investors will flock to IKN. However, Jokowi will still prioritise domestic investors.

“I asked the Head of IKN Authority to prioritise domestic investors. However, if there is none, we will utilise foreign investors,” Jokowi said.

Jokowi revealed that there were several projects that will be groundbreaking in IKN until December 2023. The total investment value reaches Rp45 trillion.

“The Head of [IKN] Authority said that I must return in December to carry out groundbreaking. How many projects are we talking about? Around 8-9 will commence. We hope that they will continue to make Nusantara livelier,” he revealed.

Toll road network

During the occasion, the President and his group also inspected the road network towards Nusantara. The inspection started from Balikpapan through IKN Access Toll Road towards Balang Island Bridge to Central Government Core Area (KIPP) in IKN.

President Jokowi said that IKN Toll Road that is connected to Balikpapan-Samarinda (Balsam) Toll Road would shorten travel time from Balikpapan to KIPP in IKN, so it will accelerate the mobility of goods and people to IKN.

“Usually, we go through Baikpapan-Samarinda Toll Road towards Sepaku to go to IKN, which takes 2 hours and 15 minutes. With the toll road, going from Balikpapan to Nusantara that is 57 km away will only take 45 minutes,” the President said.

He said that he was optimistic about completing IKN Toll Road in July 2024. The freeway is constructed in accordance with IKN’s principle as a smart forest city.

“The progress has almost reached 55%, and it is expected to be used in July 2024. The sides of the road are made as green as possible with trees that are endemic to Kalimantan. We hope that the sides of the road will be all green. We have prepared 60 thousand trees for the toll road alone,” President Jokowi said.

PUPR Minister Basuki Hadimuljono said that IKN Toll Road and existing toll roads needed to be different in terms of their quality and environment. “The quality of the toll road in IKN needs to be far better than any other toll road. It must be an example. Its environment and quality must be better. If it is poor, I will ask for it to be demolished,” Minister Basuki said.

IKN Infrastructure Development Implementation Task Force Head Danis H. Sumadilaga said that the construction of IKN Toll Road currently included three sections, namely Section 3A (Karangjoang-KKT Kariangau) spanning 13.4 km that is 34.22% completed, Section 3B (KKT Kariangau-Tempadung Interchange) spanning 7.3 km that is 42.67% completed, and Section 5B (Tempadung Interchange-Balang Island Bridge) spanning 6.7 km that is 61% completed.

“Construction is currently continuously carried out. Later, it will be continued with overpasses, beautification works, and toll road facilities,” Danis Sumadilaga said.

The improvement of connectivity towards IKN is also carried out by the PUPR Ministry by continuing the beautification work on Balang Island Bridge that was completed in 2021. The beautification work has commenced since September 2022. It includes the construction of concrete blocks that act as a security measure, a landscape park at the bridge information centre building, a playground, stores, public toilets, a mosque, security posts, a floating dock, solar panels, and an amphitheatre.

The construction of Balang Island Bridge consists of the main bridge spanning 804 metres, the approach bridge spanning 167 metres, and the access road spanning 1,807 metres. The beautification work is included in the construction package of the fender and the support buildings that are constructed using the APBN worth Rp306 billion. The construction is caried out PT Hutama Karya (Pesero), PT Adhi Karya (Persero), and PT Bangun Cipta Konstruksi (Joint Operation).

Highways Director General of the PUPR Ministry Hedy Rhaadian, Human Settlements Director General Diana Kusumastuti, Housing Director General Iwan Suprijanto, Expert Staff to Minister for Technoogy, Industry, and EnvironmentEndra S. Atmadjaja, East Kalimantan BBPJN Head Reiza Setiawan, PT Adhi Karya (Persero) Tbk President Director Entus Asnawi Mukhson, PT Hutama Karya (Persero) President Director Budi Harto, and PT Bangun Cipta Kontraktor President Director Djoko Sarwono also accompanied Minister Basuki.

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