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 - Hutama Karya garap kontrak baru di IKN Rp603,8 M
18 June 2025
PT Hutama Karya (Persero) has reaffirmed its commitment to the development of Ibu Kota Nusantara (IKN) by securing a new contract worth Rp603.8 billion for Package F of the Road Improvement Works in Central Government Core Area (KIPP) 1B.
Executive Vice President and Corporate Secretary of Hutama Karya, Adjib Al Hakim, stated that the project, which spans a total road length of 2.54 kilometres, is an integral part of IKN’s transportation masterplan aimed at enhancing connectivity within the strategic zone. He emphasised that by prioritising quality and sustainability, Hutama Karya is committed to delivering long-term benefits for the development of Ibu Kota Nusantara.
The project, located in Sepaku District, North Penajam Paser Regency, East Kalimantan Province, will be executed through a Joint Operation (JO) between Hutama Karya and PP (HK-PP JO), with Hutama Karya holding a 55 percent share. Construction is targeted for completion by the end of December 2025.
Package F consists of two road lanes with different construction types. The first lane, Row 36, will use rigid concrete overlaid with asphalt, with a width of 12 metres per lane. The second lane, Row 54, will use flexible asphalt construction with a width of 8.5 metres per lane. This road package will connect the banking area within KIPP 1B.
Adjib noted that the main challenge in this project is the land embankment, which reaches a height of 10 to 12 metres. To address this, the company will use specialised technology to ensure the embankment remains stable and does not collapse, including the use of geotextile stabilisers.
The new project is expected to create hundreds of jobs, in line with the third point of the Asta Cita programme to generate employment for Indonesians. In addition to direct employment, the project will also stimulate growth in supporting sectors such as natural material supply, heavy equipment rental, transportation, and logistics.
Hutama Karya is also committed to implementing community partnership programmes, including empowering local catering services for workers and staff.
The Package F project adds to Hutama Karya’s portfolio of ongoing projects in IKN, which include the Coordinating Ministry Office Complex 2, ASN Flats 2, VVIP Airport Landside Facilities, the Vertical Hospital, the National Mosque Area, Infrastructure Facilities 1B, Wastewater Pipeline Network 1 and 3 in KIPP, IKN Toll Road Segment 3A Karangjoang–KKT Kariangau, Pulau Balang Bridge Fender, Pulau Balang Bridge, and IKN Toll Road Segment 5B Pulau Balang–Simpang Riko. Most of these projects are currently in the construction phase.
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