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Nusantara: Indonesia’s dreams are ‘too ambitious’

Nusantara: Indonesia's dreams are 'too ambitious'


Nusantara Capital City (IKN) is a megaproject of unrestrained ambition, as the planners of Indonesia’s future capital envision facilities straight out of science fiction, from smart buildings powered by renewables to flying cars.

However, questions about how realistic such plans are grow louder by the day, as the inauguration deadline nears for what some say might be the single biggest contributor to President Joko Widodo’s legacy.

The money to build it all is nowhere to be seen, notwithstanding the availability of almost all of the required technology.

Nusantara is scheduled to be inaugurated next year, when Indonesia celebrates its 79th anniversary of Independence on Aug 17. When asked whether its basic smart city infrastructure would be ready by then, IKN Authority undersecretary for green and digital transformation Ali Berawi answered: “Inshallah (God willing).”

Mr Ali said the basic part of building a smart city was its connectivity infrastructure, which included electricity distribution and fibre-optic Internet. As part of the first phase of construction, both are to be delivered by the city’s inauguration.

Cables for these, explained Mr Ali, would be placed underground inside what is known as multi-utility tunnels (MUT), which would also house the city’s piping and sewage system for convenient maintenance.

Followed by the construction of command and data centres, the technology infrastructure for the first phase of IKN, or the central government area, would then be ready for the implementation of further smart city features, said Mr Ali.

“There are 451 days until Aug 17 (2024), and so far, the progress is on track,” Mr Ali told reporters on Wednesday last week.

He said the IKN Authority had inked a deal with South Korean automotive manufacturer Hyundai to procure “flying cars” for IKN, which he said were in fact 5-seat passenger drones planned to be put on display and demonstrated in public in Nusantara next year.

Known as urban air mobility (UAM), these drones are said to be able to travel 100km with a top speed of 300kmh.

“According to our calculation, the fare for these drones is neck and neck with that of premium taxis… and the production cost is not high, when compared to helicopters,” Mr Ali said.

However, Mr Ali admitted that investment was the biggest hurdle to realising the megaproject, in line with concerns expressed by IKN Authority head Bambang Susantono at a separate event held on Tuesday last week.

“Pak President always asks ‘Where are our investor friends? When will you start to macul (break ground)?’” Mr Bambang said.

At the Group of Seven summit earlier in May, Mr Widodo bagged 24 more letters of intent (LOIs) for IKN investment from Japanese companies, bringing the total to more than 220 from 17 countries, according to Mr Bambang.

He said it would “take time” for these LOIs to materialise into investments, as the potential investors would have to sign nondisclosure agreements (NDAs), after which they could request confidential information regarding the project.

Once the information was provided, the investors could make feasibility studies to decide whether to join or back out. So far, Mr Bambang said, more than 35 NDAs had been signed by potential investors.

At the Group of Seven summit earlier in May, Mr Widodo bagged 24 more letters of intent (LOIs) for IKN investment from Japanese companies, bringing the total to more than 220 from 17 countries, according to Mr Bambang.

He said it would “take time” for these LOIs to materialise into investments, as the potential investors would have to sign nondisclosure agreements (NDAs), after which they could request confidential information regarding the project.

Once the information was provided, the investors could make feasibility studies to decide whether to join or back out. So far, Mr Bambang said, more than 35 NDAs had been signed by potential investors.

Source: Straits Time

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