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The Transportation Sector in Nusantara National Park Attracts Many Investors

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By: Alexander Joshua Galen )*

The relocation of the State Capital (IKN) to East Kalimantan has become a magnet for investors. One of the sectors that attracts investment is transportation. 

The development of IK) Nusantara continues to show progress, several investors are interested in cooperating with Indonesia. As said by the Minister of Transportation Budi Karya Sumadi where there have been several investors who are interested in investing in transportation infrastructure at IKN. According to him, the majority of investors come from foreigners.

Investors interested in investing in IKN come from India, Japan, South Korea, Saudi Arabia and the United Arab Emirates. Budi has met investors from South Korea face to face. Even the investor from the State of Ginseng has also visited IKN. One of the investment opportunities referred to by Budi is the construction and operation of VVIP IKN Airport, East Kalimantan.

Budi noted that the location of the airport is about 10 km from Indonesia. Nevertheless, investment in IKN’s VVIP Airport will take time, bearing in mind that investors must check the effectiveness of the VVIP airport.

His party, together with the Ministry of Public Works, have already held discussions, later they will look for the best contractor and in May or June 2023 they will be able to meet the contractor effectively.

Budi assesses that investment in VVIP IKN Airport can be done in two ways, namely directly joining during the development process or through strategic partnerships. However, Budi assesses the potential for transportation investment that is no less attractive in electric vehicles or EVs. This is because land mobility in the archipelago will focus on EV.

Budi said, if possible, the use of buses is electric buses, EV everyday vehicles, and so on. If it can be supplied from within the country. According to Budi, the EV used in IKN has at least 50% local content. Where this number has become  the role of the game  that has been outlined by the President.

Budi also said that the government would build a railway connecting IKN Nusantara, Sultan Aji Muhammad Sulaiman Sepingan Airport and Balikpapan City. According to him, the type of train used is similar to the elevated train that connects the terminals at Soekarno-Hatta Airport.

That is, the train does not use rails because the wheels used are not iron, but rubber. Therefore, Budi conveyed that the train does not require rails to move.

The maximum passenger capacity per train car is estimated to be only 50 people. Budi said the train was chosen so that the total number of passengers per trip is high and the time between meetings is tight.

Budi assesses that the investment in the construction of the train can be carried out in various aspects, such as the railroad track to the procurement of the train itself. Thus the construction of the train requires a lot of funds and high technology.

His party has planned that the construction of the railroad does not have to be completed in 2024, but the track line has been sent via letter to the Minister of PUPR. The railroad track is next to the toll road that connects Balikpapan, Sepingan Airport and Nusantara. The location was chosen to avoid land acquisition.

He said that the remaining land needed for the construction of the railroad was only 10-25 km in Balikpapan City. Meanwhile, the total railroad line reaches 40 Km. To avoid congestion in transportation infrastructure, the train does not go directly from the airport to IKN but goes to Balikpapan first and then exits to IKN.

On a different occasion, the Minister of Agrarian Affairs, Infrastructure and Transportation of the Republic of Korea (South Korea) Won Hee-Ryong said, at least 50 businessmen from South Korea were brought to the IKN to see the atmosphere of the IKN development in East Kalimantan. South Korea is willing to collaborate and cooperate with the IKN Authority in realizing the archipelago as a smart city with sophisticated technology.

Minister Won added that his party would prepare concrete steps so that collaboration with the IKN authority could be realized soon. One example of concrete steps to be taken is  capacity building .

The head of the IKN Authority, Bambang Susantono, greatly appreciates the intention of the South Korean government, which intends to collaborate with Indonesia in developing the archipelago.

Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said a minimum of IDR 200 trillion of investment would be included in the IKN development project in the first phase.

Regarding the Transportation Sector, Minister Budi Karya has also increased coordination with (pj) DKI Jakarta Governor Heru Budi Hartono. This was done because the coordination between the Ministry of Transportation and the Provincial Government of DKI Jakarta is quite important because Jakarta’s transportation is a role model for other cities and is the  top of mind  in society with all the conveniences and difficulties such as traffic jams and so on.

The development of IKN continues to progress towards a smart city, where one of the factors is the sophistication of transportation, so that foreign investors are needed to realize this target.

)* The author is a Contributor to Suara Equator

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