Ministry begins Rp5.3-trillion first phase of IKN development

Ministry begins Rp5.3-trillion first phase of IKN development

The Public Works and Public Housing (PUPR) Ministry signed an agreement on the first phase of the new capital city (IKN) Nusantara’s infrastructure development. The project worth Rp5.3 trillion was marked with the signing of 19 work packages in Jakarta on Monday (August 29, 2022). (ANTARA/HO-PUPR Ministry/rst)

Jakarta (ANTARA) - The Public Works and Public Housing (PUPR) Ministry launched Phase 1 of basic infrastructure development of the new capital (IKN) Nusantara, East Kalimantan, with the signing of contracts for 19 project packages in Jakarta on Monday.

This year’s Phase 1 package comprising 19 project packages is worth Rp5.3 trillion.

"The PUPR Ministry has drawn up plans of basic infrastructure development in IKN Nusantara for the period 2022–2024, with a total budget of Rp43.73 trillion. In 2022, the budget allocated for IKN development is Rp5.3 trillion," Secretary General of the PUPR Ministry Mohammad Zainal Fatah informed.

After the completion of the auction process by the Directorate General of Construction Development, 19 work packages were signed symbolically: six packages worth Rp42.8 billion by the Directorate General of Water Resources, eight packages worth Rp4.59 trillion by the Directorate General of Highways, four packages with a contract value of Rp111.9 billion by the Directorate General of Human Settlements, and one package worth Rp567 billion by the Directorate General of Housing.

The PUPR Ministry is planning to sign another contract worth Rp4 trillion on September 5, 2022.

The ministry has reminded the Civil Servant Development Authority (PPK) and service providers to remain professional, work fast, work hard, work productively, pay attention to problems, actively find solutions, and be result-oriented while carrying out the projects.

Fatah said that the related agencies must also ensure that the infrastructure is functioning properly.

The PUPR Ministry has assured that the IKN construction work will begin immediately after the contract signing, and IKN's basic infrastructure will be completed according to the target by 2024.

"We will continue to consult the procurement with the Government Goods Service Procurement Policy Institute (LKPP), consultation regarding procedures with the Financial and Development Supervisory Agency (BPKP), and gather all team leaders of contractors and consultants to ensure the work goes well," he added. 

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