State-owned construction firm Waskita Karya has set its sights on investing in a number of public-private partnership (PPP) projects in Indonesia’s new capital city in North Penajam Paser and Kutai Kartanegara, East Kalimantan. The firm is currently in a preparation and discussion process to participate in the new capital’s development.
“We plan to invest in PPP projects related to infrastructure, energy and buildings that would be located in the main zone or the central government area,” a Waskita Karya operations director, Bambang Rianto, told the press on Thursday.
Of the total Rp 485.2 trillion (US$34.05 billion) cost estimate for the new capital city’s development, the state budget is only to cover for 19.2 percent. More than half (54.6 percent) is to be covered through the PPP scheme and the remaining 26.2 percent is expected from the private sector.
Bambang said Waskita Karya aimed to bring its technology to develop smart buildings, smart transportation systems and smart water management systems, as that is what the government wants as the concept for the new capital city.
“Now we are in the discussion process in our small team [for preparations]. As the area would be developed in a modern and international concept too, there must be an international standard certification that must be met, so we are preparing for that,” he said.
The government has announced that the new capital city is to be designed as a smart and green city.
“The massive development [of the new capital] will be started from 2022 to 2024, so we still have much time to prepare. Waskita, in this regard, is preparing for technology readiness and financing,” added Bambang.
According to the timeline by the National Development Planning Agency (Bappenas), the groundbreaking, land procurement and detailed engineering designs for the new capital are to be carried out in 2021. Meanwhile, the construction of the main zone of the capital will start sometime from 2022 to 2024.