Nusantara Capital City: Two ministries speed up IKN projects

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.

Bisnis Indonesia - Ibu Kota Nusantara: Dua kementerian percepat proyek IKN

1 February 2023

By: Lorenzo A. Mahardhika and Akbar Evandio


Jakarta - The Transportation Ministry and the Public Works and Housing (PUPR) Ministry are accelerating several infrastructure projects in Nusantara Capital City in East Kalimantan.

This year, the PUPR Ministry will construct apartments for state civil apparatus (ASN), the Indonesian National Armed Forces (TNI), and the Indonesian National Police (Polri) in Nusantara Capital City from June to July 2023.

PUPR Minister Basuki Hadimuljono affirmed that the government decided to prepare 47 apartments in Nusantara Capital City worth Rp9.4 trillion.

“47 towers were decided to be built for around 16,900 ASN, TNI, and Polri. There are 11,000 ASN and around 5,000 TNI-Polri,” he said on Monday (30/1).

Basuki is targeting the housing project to be completed on time in 2024. The apartments are official houses for officials on duty.

“The official houses have been decided. Later, maybe there will be landed houses that can be purchased. However, these ones are for ASN, TNI, and Polri on duty there.”

Basuki explained that the houses were apartments because it was in line with the forest city concept of Nusantara Capital City. With the concept, he added that the housing construction would not use much land.

“In line with the forest city concept. If they are not towers, they will be too wide. So, they will not be too damaging and not much of the forest will be cut,” he explained.

According to him, President Joko Widodo has directed the PUPR Ministry to conduct a survey regarding the housing.

“We must survey who wants apartments and who wants landed [houses]. That is what the President directed,” he said.

Cruise ship pier

Meanwhile, Sea Transportation Director General of the Transportation Ministry Arif Toha explained that the government would construct a tourism port near Nusantara Capital City.

He is currently preparing the port to be a supporting infrastructure for tourism ships that will visit Nusantara Capital City.

According to him, the Transportation Ministry has also surveyed potential locations for the port.

“This port will be used for tourism. We have determined the location to be in Punggur,” he said after the hearing with House of Representatives (DPR) Commission V in Jakarta on Tuesday (31/1).

The Transportation Ministry is currently processing the completeness of the port construction plan. Arif said that the Transportation Ministry had also conducted a feasibility study that was forecasted to be completed this year.

Arif is targeting the tender for the tourism pier project to be held next year after the feasibility study is completed. 

He also cannot disclose the capacity of the port and the amount of funds that will be spent.

“We still cannot mention the cost as it is still in the study process. After the master plan for the port is prepared, we will know the amount of funds that will be required,” Arif continued.

This year, the Sea Transportation Directorate General has a budget ceiling of Rp8.58 trillion. Arif said that the largest allocation will be for management and technical support, reaching Rp3,51 trillion.

Next, the port sector will be allocated Rp2.2 trillion, followed by the sea traffic and transportation that is allocated Rp1.72 trillion.

Next, the navigation and the sea and coast guard unit (KPLP) sectors will be allocated Rp614.36 billion and Rp427.28 billion respectively.

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