Vision for Logistics at Nusantara

Indonesia’s new capital Nusantara in East Kalimantan is still very much a work in progress, with the construction of its overall infrastructure about 14% complete. The city is being touted as a futuristic metropolis.

The massive project has been years in the making and is slowly taking shape. If all goes to plan, the hope is up to 60,000 people will move from Jakarta to live and work in Nusantara by 2025.

The Indonesian government last week offered a package of incentives to lure high-tech companies to invest in the new capital. The offer included corporate tax exemptions, tax cuts for foreign companies who relocate to Nusantara, and a range of other concessions.

Our attention is focused on the potential for logistics via air and sea to the new capital.

At present, the closest airport is at Balikpapan, almost 100 kilometres away by road. A new airport located in Penajam, will serve as the primary international airport to Nusantara. A planned toll road will be built connecting the government central area to the airport, 47 km away. President Joko Widodo has instructed that it should only take 30 minutes to go from Balikpapan’s Sultan Aji Muhammad Sulaiman Sepinggan airport to Nusantara.

Balikpapan is also the seaport city for East Kalimantan. Located on the east coast of Borneo, the city is the financial centre, with the largest economy in Kalimantan.

A toll road, already under construction, aims to cut the travel time between Balikpapan’s Kariangau seaport and the new capital by directly connecting the port and the newly built bridge before continuing north toward Nusantara.

According to a study by the Ministry of Transport, the long-term goal (2024 to 2030) is directed at the integration of the eastern Indonesia economy with the regional economy of the Asia Pacific region. To this end, new industrial centres are being established in the Eastern Indonesia Region that are specialised and capable of being part of international trade. The study says that improvements in the long term need to be directed at efforts to increase international connectivity, by improving the quality of key ports in the Eastern Indonesia Region.

See also our related article on the New Terminal at Gresik.

Jalak Kargo Logistik provides a complete range of logistics services through all shipping ports and airports in Indonesia. We professionally handle your import and export needs, through our extensive network of offices and agents. Jalak offers advice on all your international and domestic shipping requirements, including customs clearance, trucking and warehousing. Call us if you have project cargo or express courier consignments.

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