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As Indonesia’s new capital city, the Nusantara Capital (IKN) in East Kalimantan is predicted to offer bright business opportunities. This is because all government offices and employees will relocate to the area.
The migration will extend to government employees’ families, foreign embassies, and the general public. With such promising prospects in the IKN, many investors are eyeing potential investments in the region.
The development of IKN in East Kalimantan is creating significant opportunities for the shipping logistics industry. There is notably high interest in investing in tugboat services in the IKN waters area.
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According to data from the Indonesian National Shipowners Association (INSA), natural commodity prices have remained stable since mid-2023. This stability has positively impacted the shipping logistics sector due to relatively consistent operational costs.
Meanwhile, the high demand for transporting construction materials to IKN is the main driver of increased investment in this sector. Materials like cement, steel, and heavy machinery require dependable and efficient sea transport.
This huge opportunity attracts not only local but also foreign investors. Several international shipping companies have shown interest in investing in IKN.
As a side note, the IKN Authority reports that the government is building the Sepaku Semoi Dam to ensure a clean water supply. The dam is designed to provide 2,000 liters of clean water per second.
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Furthermore, the government is constructing the Batu Lepek, Selemayu, Safiak, and Beruas Dams and utilizing water supply from the Mahakam River to support the Sepaku Semoi Dam. These dams are being built to ensure a clean water supply for IKN until 2045.
The government is also developing the ITCI Hutani Manunggal (IHM) and the ITCI Kartika Utama (IKU) Ports. Both ports are located approximately 8.2 kilometers and 25 kilometers away from the IKN’s first-phase construction site, respectively.
Maria Kristi, Director General of Civil Aviation at the Ministry of Transportation, expects the IKN Airport to be completed by July or before August 2024. Hence, the airport will be ready for the 79th Indonesian Independence Day ceremony on August 17, 2024, in IKN.
However, despite the business opportunities, there are equally formidable challenges to overcome, especially in the areas of people mobility and goods transportation, including warehousing or logistics.
The logistics challenges extend beyond land transportation within IKN and its surroundings, encompassing air and sea logistics as well.
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There is an urgent need to build logistics areas with sufficient capacity to handle demands for both construction and post-construction at airports and seaports.
For investors, these challenges represent significant and profitable business opportunities. However, for businesses currently involved in construction and using logistics services, the existing conditions can pose unique challenges.
Therefore, strong collaboration with experienced, professional, and reputable transportation and logistics providers like SELOG is crucial.
SELOG, a subsidiary of PT Serasi Autoraya (SERA), provides end-to-end logistics through diverse services to meet customers’ needs, including Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding, Warehouse and Yard Management, and Courier Services.
Driven by the latest digital technologies, SELOG Services not only bring greater convenience to your business but are also practical and efficient.
With its Astra Fleet Management Solution (FMS), SELOG provides businesses in Indonesia with IT-based comprehensive solutions for managing fleet vehicles.