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Investor Daily - Strategi RI gaet investor asing di proyek Giant Sea Wall
13 May 2025
By Heru Febrianto
The government continues to refine the design of the Giant Sea Wall megaproject to attract both domestic and international investors. The planned development will include residential areas, business hubs, and recreational facilities.
According to the annex of Presidential Regulation No. 12 of 2025 on the National Medium-Term Development Plan (RPJMN) for 2025–2029, the Giant Sea Wall for the northern coast of Java has been listed as a National Strategic Project (PSN) for the period. The designated locations include Jakarta, West Java, East Java, Banten, and Central Java.
To realise the 946-kilometre project, President Prabowo Subianto has tasked the Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, with forming a task force to oversee coastal management in northern Java.
This task force will involve several ministries and agencies, including the Ministry of Public Works (PU), the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), the Ministry of Environment, and local governments.
The construction of the Giant Sea Wall, stretching from Banten to East Java, will not rely solely on the state budget (APBN); private sector support is also crucial.
To draw private investment, the government is refining the project’s design. Beyond flood prevention, the Giant Sea Wall will also serve as a catalyst for regional development.
This was highlighted by Coordinating Minister for Infrastructure and Regional Development Agus Harimurti Yudhoyono during the regional consultation of the Ministry of Public Works in Jakarta on Friday, 9 May. Commonly known as AHY, he stated that the government is harmonising various initial designs and concepts related to the project.
"There are several existing concepts, including those continuously updated by the Ministry of Public Works and Bappenas. Let us bring these ideas together. The Coordinating Ministry for Infrastructure and Regional Development will help align initial designs and integrate the concepts developed so far," AHY stated, as quoted by Antara in Jakarta on Friday, 9 May 2025.
Rising sea levels are already affecting coastal areas, particularly the northern parts of Jakarta, which are experiencing land subsidence. AHY emphasised the need for long-term strategic solutions to protect coastal communities.
"Current seawalls may not be sufficient in the next ten to 20 years. We must take more strategic and sustainable measures to safeguard coastal residents," he said.
Efforts to harmonise designs and initial concepts for the Giant Sea Wall are progressing alongside securing funding sources.
"We must be precise in our planning and calculations. While we have many ambitions, we need to ensure proper funding mechanisms. This requires a proactive approach," he explained.
AHY actively engages with potential investors, both domestic and international, outlining key infrastructure priorities for the next five years.
He stated that the government will utilise a Public-Private Partnership (PPP) scheme for the Giant Sea Wall project. To further attract foreign investors, a land value capture mechanism will be implemented, allowing for proportional economic gains from land designated for investment.
"This approach increases the value of surrounding land, known as land value capture. If designed well, it benefits everyone. Investors will not just be building a seawall—they will gain commercial advantages through land appreciation. The site can include housing, business centres, tourism areas, and more," AHY explained.
Previously, Menko IPK Agus Harimurti Yudhoyono revealed that the Giant Sea Wall project has captured the attention of foreign investors from Europe to the Middle East.
"Yes, that is correct. Many have expressed interest. When we meet with partners from Asia, Europe, and other regions, including the Middle East, they are keen to learn more," AHY stated in Jakarta on Thursday night, 8 May.
He believes that the International Conference on Infrastructure provides an excellent platform to present key projects like the Giant Sea Wall to both domestic and global investors.
"This forum allows us to explain project prospects and discuss the most suitable partnership mechanisms, ensuring mutual benefits," he noted.
The Coordinating Ministry for Infrastructure and Regional Development is set to host the International Conference on Infrastructure, aiming to showcase and promote priority projects requiring further attention and support.
"Financial backing from credible sources will be managed prudently and transparently to ensure efficiency, prevent wastefulness, and ultimately benefit the public," AHY stated.
The International Conference on Infrastructure is not solely about securing funding; it is also focused on strengthening partnerships.
"This effort is ongoing. We are not only seeking investment but also fostering partnerships. That is even more crucial, as our goal is for Indonesia to remain a key player in the region. Our development must be integrated and increasingly connected to the global market," he concluded.
Meanwhile, Yayat Supriatna, an infrastructure expert from Universitas Trisakti, emphasised that reviving the Giant Sea Wall project requires certainty in several aspects, including funding sources, environmental impact, and large-scale job creation.
"This is essentially the revival of a project conceived during the previous two administrations. Its purpose must be thoroughly examined—is it primarily for environmental protection, preventing Jakarta from sinking, or driven by business interests?" he told Investor Daily.
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