Government accelerates two key infrastructure projects in IKN

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 - Pemerintah kebut dua proyek infrastruktur kunci di IKN

25 September 2023

By: Amrozi Amenan & Tri Murti

 

Jakarta - The government is focusing on accelerating the completion of two key infrastructure projects in Nusantara Capital City (IKN) in East Kalimantan. The projects are Balikpapan-IKN toll road and IKN Very Very Important Person (VVIP) Airport.

“We are prioritising the construction of the toll road from Balikpapan to IKN to shorten travel time from Balikpapan to IKN that currently takes two hours. After the toll road is connected, [travel time] is predicted to only take 30-45 minutes,” Public Works and Housing (PUPR) Minister Basuki Hadimuljono said in his official statement last weekend.

Regarding the progress of IKN VVIP Airport, Transportation Minister Budi Karya Sumadi said that his agency planned to commence the construction of the VVIP airport on 1 November. He mentioned that the air transportation infrastructure project has entered the drawing finalisation stage and will be tendered soon. 

“We are planning the construction to commence on 1 November 2023, and it is expected to be completed in the middle of July 2024,” the Transportation Minister said.

The Transportation Minister affirmed that IKN was a future city that will be an example for other cities in Indonesia. Hence, accessibility and connectivity must be prepared as best as possible, including the preparation of the airport.

“The VVIP airport is located around 15 km from the centre of IKN that is around 20 minutes away,” the Transportation Minister added.

IKN VVIP Airport will have a runway of 3,000 x 45 metres that can accommodate wide-body aircrafts, such as Boeing 777-300 ER and Airbus A380. The apron is capable of accommodating three wide-body aircrafts and 1 narrow-body aircraft or seven narrow-body aircrafts. The capacity of the helipad can accommodate three helicopters.

“IKN VVIP Airport’s terminal is located on top of a land that is 7,000 m2 in size with a VVIP [section] that reaches around 1,500 m2,” the Transportation Minister said.

He also said that there were several notes from President Joko Widodo (Jokowi) regarding the VVIP airport, which state that it must synergise local wisdom with modern elements and be eco-friendly.

“In constructing the airport, we do not have to cut and fill, so mountains, lakes, and nature around [the airport] will still be maintained,” he stated.

Regarding the local wisdom element, the Transportation Minister continued that it would be implemented on the design of the airport’s terminal, so it will have nuances of longhouses, hornbill birds, and curved line paintings that are typical of Sumatra. Longhouses are traditional Dayak houses in Kalimantan, which will be highlighted at the airport and the port. Hornbill birds are birds that are endemic to Kalimantan. Curved line paintings that are typical of Sumatra will be showcased in a modern manner at the airport and the port.

The spatial planning of the airport consists of a VVIP terminal, a VIP terminal, a ground support equipment (GSE) parking space, airside checkpoints, security posts, hangars, a cargo area, a catering area, an aircraft refuelling depot (DPPU), pumphouses, a sewage treatment plant (STP), a waste treatment plant (WTP) , substation power houses, GSE maintenance workshops, worship buildings, offices, quarantine buildings, cafeterias, official houses, a test pilot school (TPS), a meteorological office, an emergency operating centre (EOC), a fire and rescue centre, powerhouses, PLN substations, and ATC towers.

Flocking

Meanwhile, President Jokowi revealed that Balikpapan-IKN toll road and IKN VVIP Airport were key projects in IKN that will attract investors to flock to invest in the new capital city area.

“Both [toll road and airport projects] are key. When they are completed, I believe it. Even before they are completed, [investors] are already flocking. When both [projects] are completed, more investors will flock to invest in IKN,” the President said.

Jokowi explained that the construction of Balikpapan-IKN toll road would enter the construction phase soon, and it is set to be completed in July 2024. The Head of State ensures that Balikpapan-IKN toll road will shorten travel time to 30 minutes from Balikpapan to Nusantara from around 1.5-2 hours.

“Earlier, the PUPR Minister said that he has made a breakthrough. It means it will commence construction soon. When will it be completed? The [toll] road will be completed in July 2024,” he stated.

Regarding the airport, Jokowi said that the construction would commence soon, and it is expected to be completed in August 2024 at the latest. According to Jokowi, travel time from the airport to the centre of Nusantara will only take 15 minutes.

“Around 15 minutes from the airport to here. We expect it to be completed in July or August at the latest,” Jokowi said.

The President also said, some time ago, 30 investors from South Korea, 40 investors from Japan, and 120 investors from Singapore stated they were interested to invest in IKN. Jokowi believes that the investors have made a smart calculation on the economic potential of IKN.

Convenience and comfort

Meanwhile, an urban planning observer, Yayat Supriatna, agrees with the President’s statement that the completion of Balikpapan-Nusantara toll road and IKN VVIP Airport is the key to attract investors to invest in IKN. The completion of both projects will provide convenience and comfort for people who want to go to IKN.

“If there is no special airport, [visiting IKN] will not be convenient and comfortable. Flights are limited as it is difficult to even book a flight when there are many guests due to the capacity of the airport in Balikpapan,” Yayat said to Investor Daily on Sunday (24/9/2023).

Yayat also said that IKN VVIP Airport would facilitate business players who want to visit IKN using private aircrafts.

“Rich business players do not want to use regular aircrafts. If they want to go to IKN, it must be quick, easy, and convenient. They can depart in the morning and be back in the evening. They cannot follow the schedule [of commercial flights]. Their time is valuable,” Yayat said.

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