Indonesian Minister of Transportation Budi Karya Sumadi said that investors from South Korea, Japan, and India have shown interest in investing in the construction of a VVIP Airport in the Nusantara National Capital (IKN) in East Kalimantan.
The airport will be located around 10 to 15 kilometers from the center of IKN and is expected to be begin construction in May or June 2023.
The airport will be integrated with modern modes of transportation such as EVs for VIP guests and military needs.
Minister Budi explained that Investment in the VVIP Airport can be done in two ways: direct capital injection during the development process; or through strategic partnerships.
“Investment could be done initially from the early stages, after that investors who come in, could take several percent like in Kualanamu,” said Budi Karya Sumadias as quoted by katadata.co.id.
Despite their interest in making investments in IKN projects, foreign investors still need to conduct further assessments and examine the feasibility of projects.
Flood poses risks
One of the possible concerns for investors to analyze would be the condition of infrastructure in IKN. Just recently on March 17, 2023, flood inundated parts of the planned IKN development area.
Authority claimed that the flood was caused by high intensity of rain and the presence of water tunnels, which increase the surface runoff area for water.
Achmad Jaka Santos Adiwijaya.
“Then there was erosion, sedimentation, and shallowing of the river,” said Achmad Jaka Santos Adiwijaya, secretary of the IKN Authority as quoted by Tempo.co, on March 20, 2023.
The IKN Authority has identified several areas with potential for flooding in the Sepaku Village. The area is a low-lying area that has often been flooded before.
So far, the government has been discussing short-term management plans for the next three months, medium-term, year-end, and long-term in flood prevention and control.
Currently, flood mitigation projects are underway including the construction of weirs, ponds, and retention ponds.
“In addition, the construction of flood control infrastructure in river basin areas and the preparation of an integrated Watershed Management Plan at the IKN, and forest and land rehabilitation by the Mahakam Berau River Basin Management Agency (BPDAS),” Adiwijaya explained.
