Government to build new airport in new capital

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 akan bangun bandara baru di IKN

27 February 2020

By: Thresa Sandra Desfika

Jakarta – The government is planning to build a new airport in the new capital in East Kalimantan. The exact location has yet to be determined, but it is predicted to be 15 kilometres (km) from the centre of the city.

“There is a third airport. The exact location has yet to be determined, but it is probably 15 km from city centre. [The construction will use] the PPP (public-private partnership) scheme. The construction is planned to commence by the end of 2021,” Transportation Minister Budi Karya Sumadi said in a discussion titled Merajut Konektivitas Ibu Kota Negara held by Transportation Research and Development Agency (Balitbanghub) of the Transportation Ministry in Jakarta on Wednesday (26/2).

The government is holding a competition to determine the design of the new airport in the new capital in East Kalimantan. According to Budi, three countries, namely Japan, China, and South Korea, have stated their interests to participate in the new capital construction and will probably enter the new airport project.

“Japan, China, and Korea usually [make offers on] railways as well as airports. So, we will hold the airport design competition first, then the project will be made,” he explained.

Furthermore, the government is planning to make the three airports in Balikpapan, Samarinda, and the new capital in East Kalimantan managed by a single operator. The three airports will be managed by a consortium of local and foreign companies.

He added that the new airport would have the same management as existing airports, namely Sepinggan Airport in Balikpapan and APT Pranoto Airport in Samarinda. Sepinggan Airport is currently managed by PT Angkasa Pura I and APT Pranoto Airport is managed by the Transportation Ministry.

“So, we will bundle the three airports to be under a single operator. We will invite consortiums of foreign and local companies so investment in the airports will not use the state budget, but [the investment will come] from the foreign company investing there,” the Transportation Minister explained.

He said that the new capital construction was announced as an innovative, smart, and sustainable city, so a thorough preparation was required before commencing construction. Several transportation modes provided in the new capital are the train from Balikpapan and electric busses.

“An announcement from the President states that the new capital will be an example and an innovation from all citizens, including in terms of connectivity. We will provide sustainable vehicles that use electricity,” Budi explained.

Inviting peers

The Transportation Ministry is inviting several peers, such as England and Japan, for suggestions on the transportation system in the new capital that has a smart, integrated, and sustainable concept.

“We are implementing smart, integrated, and sustainable connectivity, which is not an easy thing [to achieve] as major activities can only commence after a thorough planning. Hence, we will invite peers, such as England and Japan, today. We will ask for suggestions from several countries on the crucial aspects of a capital city,” Transportation Minister, Budi said.

Japan is reckoned to have experience in smart technology, while England has a city with a forest city concept. Besides inviting peers, the Transportation Ministry has also established the New Capital City Transportation System Development Working Committee which is cooperating with several universities to come up with ideas and innovations for transportation.

This cooperation with universities is established after the memorandum of understanding on Transportation Research and Development was signed among Balitbanghub, Universitas Gajah Mada, Institut Teknologi Sepuluh November, Universitas Mulawarman, Civil and Environmental Department Community Services Unit of Universitas Indonesia, Institut Teknologi Bandung, and Universitas Hasanudin.

While waiting for the New Capital City draft law to be passed, the Transportation Ministry is participating in the Infrastructure Working Unit that is coordinated by the PUPR (Public Works and Public Housing) Minister to plan infrastructures in the new capital city, especially for the transportation sector.

Meanwhile, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who attended the discussion to give a keynote speech, said that transportation in the new capital would be developed to be an integrated, smart, and sustainable transportation system. Only autonomous vehicles (AV) will be allowed in the new capital.

“So, the design of the roads will be adjusted to suit [AV]. Vehicles from Samarinda, Balikpapan will not be allowed to enter the city if they are not AV. There will be special parking for non-AV cars, then they have to enter using AV or public transportations, which are also AV,” Coordinating Minister Luhut stated.

Furthermore, Luhut Binsar revealed that the capital relocation was set to commence in the first quarter of 2024.

“All [aspects] of the capital city relocation are ongoing, we hope that Bappenas (National Development Planning Agency) have arranged all of them. We hope that the government have relocated to the new capital by the first quarter of 2024,” Luhut explained.

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