STRATEGIC ASSESSMENT. Korean electronics and industrial conglomerate LG Corporation has been engaged to draw up a plan for smart urban transport in Indonesia’s new capital city, set to be built in the province of East Kalimantan on the island of Borneo, The Korean Economic Daily reports.
The city, which is to be called Nusantara, is expected to cost around $38bn to build. It will be based on smart city principles, including autonomous electric vehicles, telemedicine, smart education and drone deliveries. LG subsidiary LG CNS is will propose systems for public transportation and electric vehicles.
Last week Youth and Sports Minister Zainudin Amali and Soccer Association of Indonesia (PSSI) president Mochamad Iriawan met with Widodo who called for the city’s construction to include a state-of-the-art soccer training facility in Nusantara that would be supported by other infrastructure to make it a complete sports training center – and possible centerpiece for an Olympic Games. Widodo had previously recached out to the Indonesia Olympic Committee (NOC), asking it to propose the new capital as the 2036 Olympic Games host.
“We welcome the direction of the President to continue the offer IKN (National Capital City) for 2036 Olympics bidding,” president of Indonesia’s NOC Raja Sapta Oktohari said in a statement, adding “We will carry out this task and work hard to be the first ASEAN country to host the Olympics.” Amali told local reporters “some time ago [the president] gave directions to me for us to bid to host the 2036 Olympics, but the proposal already included the implementation in IKN.”
Investment Minister Bahlil Lahadalia said Taiwanese company Foxconn had expressed interest in investing in new capital Nusantara in East Kalimantan, following the company’s investment in electric vehicles worth IDR118 trillion. Bahlil also said Saudi Arabia was very committed and interested in investing around $20 billion in the project.
Public Works and Public Housing Minister Basuki Hadimuljono on Thursday said the tender signing for infrastructure development projects for the new capital Nusantara in East Kalimantan will take place at the end of August 2022, and will be followed by infrastructure construction.
He assured that there would be no problem in terms of the availability of budget from the government to start infrastructure construction this year. He said Finance Minister Sri Mulyani Indrawati has approved the budget for Nusantara’s construction development. However, the Finance Ministry will still review the budget proposal from the Public Works and Public Housing Ministry for inclusion in the Budget Implementation List (DIPA).
