President to carry out groundbreaking for IKN airport on 1 November
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 - Presiden groundbreaking bandara IKN pada 1 November
24 October 2023
Jakarta - President Joko Widodo (Jokowi) will conduct groundbreaking for the very, very important person (VVIP) airport in Nusantara Capital City (IKN) in East Kalimantan on 1 November.
“It is ready. Maybe on the first, 1 November,” Public Works and Housing (PUPR) Minister Basuki Hadimuljono said at the Presidential Palace in Jakarta on Monday (23/10/2023).
Basuki explained that the groundbreaking to commence the construction of the VVIP airport in IKN was ready to be carried out. The groundbreaking is planned to be carried out after President Jokowi’s visit to West Sumatra at the end of October.
With the VVIP airport, Basuki hopes that investors will enter IKN sooner as the airport will provide direct access to IKN.
“Yes, investors will enter faster as it will be closer. So, people can directly enter IKN,” he said as quoted by Antara.
Besides the groundbreaking, President Jokowi will also directly observe IKN’s development progress. Basuki explained that IKN’s development progress has surpassed 30%.
As quoted from the tender document on the official page of the electronic procurement service system (LPSE) of the PUPR Ministry, the winner of the physical construction package of the VVIP airport in IKN will be determined around 30 October to 7 November. The investment value of the VVIP airport reaches Rp4.28 trillion.
“The prequalification announcement will be made around 29 September 2023 to 6 October 2023. The prequalification document disclosure will be carried out on 2 October 2023. The winner will be determined around 31 October 2023 to 7 November. The winner announcement will be made on 7 November 2023,” the PUPR Ministry explained in the tender document on the official page of the LPSE of the PUPR Ministry.
The tender for the physical construction of the VVIP airport in IKN is participated by 14 participants. Meanwhile, one of the technical qualifications for the tender participants is to have construction experience in the last four years.
“To have construction experience in the last four years with the government or a private company, subcontracts are included,” the PUPR Ministry wrote in the tender document.
The document also mentions that the PUPR Ministry through East Kalimantan Central Chamber for National Road Implementation is constructing the VVIP airport to improve the accessibility and the mobility of important guests from and to IKN through air transportation.
Meanwhile, the Transportation Ministry stated that the VVIP airport in IKN would have a runway of 3,000 x 45 metres to accommodate wide-body aircrafts, such as Boeing 777-300 ER and Airbus A380. The apron capacity can accommodate three wide-body aircrafts and one narrow-body aircrafts or seven narrow-body aircrafts. The helipad capacity can accommodate three helicopters.
“The VVIP airport’s terminal in IKN is built on top of a land of 7,000 m2 with the VVIP airport itself reaching 1,500 m2 in size,” Transportation Minister Budi Karya Sumadi said some time ago.
Furthermore, the government is committed to accelerating the construction of two key infrastructure projects in IKN, namely Balikpapan-Nusantara toll road and the VVIP airport. The PUPR Ministry and the Transportation Ministry are currently focusing on completing both projects.
Investment partner
Meanwhile, IKN Authority (OIKN) is offering infrastructure development investment opportunities in IKN to Saudi Arabia.
“Saudi Arabia is the birthplace of Islam and Indonesia is the largest Muslim majority country in the world. Its capital Riyadh meaning ‘garden’ in Arabic is in line with our dream to create a Riyadh in Nusantara Capital City as a world sustainable forest city,” OIKN Funding and Investment Deputy Agung Wicaksono said yesterday.
Agung affirmed that it was important for Saudi Arabia to be Indonesia’s strategic investment partner, especially in IKN development. OIKN is offering infrastructure development investment opportunities in IKN through a cooperation between the sovereign wealth fund (SWF) of Indonesia, Indonesia Investment Authority (INA), and the SWF of Saudi Arabia, Public Investment Fund (PIF).
The investment sectors offered to potential investors from Saudi Arabia include renewable energy, housing, connectivity infrastructure, ecotourism, and agriculture.
OIKN attended Saudi-Indonesian Roundtable Meeting held in Riyadh in Saudi Arabia. The agenda is meant to bring together investors from both countries to discuss various investment opportunities.
“We appreciate that the forum directly attracted investment from Saudi Arabia with a letter of intent (LoI) in the renewable energy sector from the largest energy company that also participated in the development of NEOM as their future city. The renewable energy part of Saudi Vision 2030 is in line with the vision to develop Nusantara capital City to be a net zero city in 2045,” Agung said.
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