Challenges and Opportunities in Managing Large-Scale Infrastructure Projects: The Case of Indonesia"™s New Capital Nusantara

Authors

  • Nectaria Putri Pramesti University of Atma Jaya Yogyakarta
  • Imam Basuki University of Atma Jaya Yogyakarta

DOI:

https://doi.org/10.26418/jts.v25i2.92564

Keywords:

Nusantara Capital City (IKN), Infrastructure Project Management, Smart City, Private Investment, Construction Technology

Abstract

The relocation of Indonesia"™s capital to Nusantara (IKN) represents a transformational initiative to establish an innovative, sustainable, and inclusive government center in East Kalimantan. Under a Public-Private Partnership (PPP) model, IKN is envisioned as a carbon-neutral city with resilient infrastructure and technology-based public services. Despite 97,2% completion of the first development phase by early 2025, the project faces significant challenges, including heavy reliance on state funding (85%), limited private sector participation (10%), underdeveloped logistics, and a shortage of skilled labor in technologies such as Building Information Modeling (BIM), Internet of Things (IoT), and modular construction. This study employs a qualitative exploratory approach using secondary data, integrating SWOT analysis, international benchmarking (Brasília, Naypyidaw, Putrajaya), and technological evaluation. Findings indicate that digital construction technologies can improve project efficiency by up to 30% and reduce material waste by 25%. Alternative financing strategies, including green bonds and Islamic crowdfunding, can potentially increase private investment up to 40% by 2030. For long-term success, IKN must adopt innovative construction practices, invest in digital workforce development, and align with Net-Zero 2045 and the SDGs. This study contributes a comprehensive policy-technology-investment roadmap for sustainable capital development in emerging economies.

References

Akhmadi, M. H., & Himawan, A. R. (2021). Determination of Financial Feasibility of Indonesia’s New Capital Road Construction Project Using Scenario Analysis. Planning Malaysia Journal, 19(17), 190-201. https://doi.org/10.21837/pm.v19i17.998

Bonasif, J. (2017). Urban Transportation Conditions from the Metropolitan Area of Kuala Lumpur That Will Impact and Endanger Putrajaya’s Sustainability Plan. 10th International Conference on Environmental Engineering, ICEE 2017. https://doi.org/10.3846/enviro.2017.101

BPS Provinsi DKI Jakarta. (2025). DKI Jakarta Province in Figures 2025, Volume 55, 2025. https://jakarta.bps.go.id

Da Rocha, M. S., & de Medeiros, V. A. S. (2022). Main or Supporting Actor? The Role of Official Urban Planning in Brasília, Brazil. Proceedings 13th International Space Syntax Symposium, SSS 2022.

Daoud, A. O., El Hefnawy, M., & Wefki, H. (2023). Investigation of Critical Factors Affecting Cost Overruns and Delays in Egyptian Megaconstruction Projects. Alexandria Engineering Journal, 83, 326–334. https://doi.org/10.1016/j.aej.2023.10.052

Fan, P., Chen, J., Fung, C., Naing, Z., Ouyang, Z., Nyunt, K. M., Myint, Z. N., Qi, J., Messina, J. P., Myint, S. W., Myint, S. W., & Peter, B. G. (2022). Urbanization, Economic Development, and Environmental Changes in Transitional Economies in the Global South: a Case of Yangon. Ecological Processes, 11(1), 65. https://doi.org/10.1186/s13717-022-00409-6

Gomà , D. (2010). Naypyidaw vs. Yangon: The Reasons Behind the Junta’s Decision to Move the Burmese Capital. In Burma or Myanmar?: The Struggle for National Identity. 185-204. https://doi.org/10.1142/9789814313650_0007

Hanna, A. S., Chang, C.-K., Lackney, J. A., & Sullivan, K. T. (2007). Impact of Overmanning on Mechanical and Sheet Metal Labor Productivity. Journal of Construction Engineering and Management, 133(1), 22–28. https://doi.org/10.1061/(ASCE)0733-9364(2007)133:1(22)

Immawan, T., & Nugraha, I. (2020). Escalation Proposal of Supply Chain Management Performance of Oil and Gas Upstream Industry in PT. XYZ by Using SCOR Model Approach. IOP Conference Series: Materials Science and Engineering, 722(1), 012047. https://doi.org/10.1088/1757-899X/722/1/012047

Julian Perdana, A. (2024). Building Nusantara: A Comparative Study on Capital City Relocation and the Path Towards a Smart, Sustainable Urban Future. E3S Web of Conferences, 495. https://doi.org/10.1051/e3sconf/202449501001

Khatib, M. E., Zitar, R. A., Alnaqbi, A., Alnaqbi, A., Alsuwaidi, H., Marri, M. A., & Ankit, A. (2023). Implementing IOT in Effective Project Management. International Journal of Computers and Their Applications, 30(2), 192–200.

Kompas.com. (2025, January 15). Pembangunan Tahap I Rampung, IKN Siap Sambut Investor untuk Pengembangan Lanjutan. https://ikn.kompas.com/read/2025/01/15/112056787/pembangunan-tahap-i-rampung-ikn-siap-sambut-investor-untuk-pengembangan-lanjutan?page=all

Li, J., Wan, Z., Qiao, R., Li, Y., & Hu, J. (2023). The Influencing Factors of Provincial Population Distribution in Myanmar | 缅甸çœåŸŸäººå£åˆ†å¸ƒæ ¼å±€åŠå…¶å½±å“å› ç´ ç ”ç©¶. World Regional Studies, 32(9), 55–66. https://doi.org/10.3969/j.issn.1004-9479.2023.09.2021955

Liu, L., Huang, Y., & Jiang, Y. (2024). Developing a Logistic Chain-Enabled BIM System for Material Management in Modular Construction. Construction Research Congress 2024, CRC 2024, 1, 757–766. https://doi.org/10.1061/9780784485262.077

Love, P. E. D., Edwards, D. J., & Han, S. (2011). Bad Apple Theory of Human Error and Building Information Modelling: A Systemic Model for BIM Implementation. Proceedings of the 28th International Symposium on Automation and Robotics in Construction, ISARC 2011, 349–354.

Love, P. E. D., Smith, J., & Regan, M. (2017). Cost Overruns in Public Infrastructure Projects: Re-Evaluating Procurement in an Era of Digitization. 6th CSCE-CRC International Construction Specialty Conference 2017 - Held as Part of the Canadian Society for Civil Engineering Annual Conference and General Meeting 2017, 1, 427–435.

MacLeod, J. M., & Rosei, F. (2015). Supporting the Development and Deployment of Sustainable Energy Technologies Through Targeted Scientific Training. In Sustainable Access to Energy in the Global South: Essential Technologies and Implementation Approaches, 231-233. https://doi.org/10.1007/978-3-319-20209-9_20

Majizat, A., Ahmad, B., Noordin, N., & Sharip, Z. (2016). Adopting an Integrated Catchment-Based Management Approach for Putrajaya Lake and Wetlands. International Journal of Water, 10(4), 343–358. https://doi.org/10.1504/IJW.2016.079701

Melaku Belay, S., Tilahun, S., Yehualaw, M., Matos, J., Sousa, H., & Workneh, E. T. (2021). Analysis of Cost Overrun and Schedule Delays of Infrastructure Projects in Low Income Economies: Case Studies in Ethiopia. Advances in Civil Engineering, 2021 (1), 4991204. https://doi.org/10.1155/2021/4991204

Nurjaman, H. N., Rivky, R., & Fau, M. N. (2024). Planning and Implementation of the Flatpack Modular System for Construction Worker Residents in the Indonesian National Capital. In AIP Conference Proceedings, 3215(1), 060004. https://doi.org/10.1063/5.0235650

Omar, D. B. (2004). The Total Planning Doctrine and Putrajaya development. WIT Transactions on Ecology and the Environment, 72(10), 81-90.

Pan, Y., Song, T., & Li, F. (2023). Research on the Indonesian Capital Relocation Plan Under the Push and Pull of Multi-Scale Geopolitical Elements | 多尺度地缘政治è¦ç´ 推拉作用下的å°åº¦å°¼è¥¿äºšè¿éƒ½è®¡åˆ’ç ”ç©¶. World Regional Studies, 32(11), 57–68. https://doi.org/10.3969/j.issn.1004-9479.2023.11.2021718

Putri, C. R., Berawi, M. A., Rahman, H. Z., Saroji, G., & Sari, M. (2024). Development of Public Private Partnership Scheme in the Development of Intelligent Transportation System in Nusantara Capital City (IKN) to Support Mobility and Connectivity: A Literature Review. AIP Conference Proceedings, 3215(1), 020010. https://doi.org/10.1063/5.0235745

Rachmawati, R., Haryono, E., Ghiffari, R. A., Reinhart, H., Fathurrahman, R., Rohmah, A. A., Permatasari, F. D., Sensuse, D. I., Sunindyo, W. D., & Kraas, F. (2024). Achieving Sustainable Urban Development for Indonesia’s New Capital City. International Journal of Sustainable Development and Planning, 19(2), 443–456. https://doi.org/10.18280/ijsdp.190204

Rachmawati, R., Haryono, E., Ghiffari, R. A., Reinhart, H., Permatasari, F. D., & Rohmah, A. A. (2021). Best Practices of Capital City Relocation in Various Countries: Literature Review. E3S Web of Conferences, 325, 07004. https://doi.org/10.1051/e3sconf/202132507004

Ramani, P. V., & KSD, L. K. L. (2021). Application of Lean in Construction Using Value Stream Mapping. Engineering, Construction and Architectural Management, 28(1), 216–228. https://doi.org/10.1108/ECAM-12-2018-0572

Rossman, V. (2018). Capital Cities: Varieties and Patterns of Development and Relocation. Routledge. https://doi.org/10.4324/9781315735061

Samuelson, O., & Stehn, L. (2023). Digital Transformation in Construction – A Review. Journal of Information Technology in Construction, 28, 385–404. https://doi.org/10.36680/j.itcon.2023.020

Sing, M., Chan, J., Liu, H., & Ngai, N. N. H. (2023). Developing an Analytic Hierarchy Process-Based Decision Model for Modular Construction in Urban Areas. Journal of Engineering, Design and Technology, 21(4), 1212–1229. https://doi.org/10.1108/JEDT-05-2021-0242

Sulasno, M. S., & Sucahyo, Y. G. (2023). Smart Mobility Recommendation for Ibu Kota Nusantara (New Capital City of Indonesia). 2023 International Conference on Information Management and Technology (ICIMTech), 825–830. https://doi.org/10.1109/ICIMTech59029.2023.10278031

Susanti, D. O., Efendi, A., & Putri, A. S. (2024). The Urgency of Sharia-Crowdfunding as an Alternative Funding in Development of Nusantara’s Capital City. Petita: Jurnal Kajian Ilmu Hukum dan Syariah, 9(1), 114–128. https://doi.org/10.22373/petita.v9i1.242

Syaban, A. S. N., & Appiah-Opoku, S. (2024). Unveiling the Complexities of Land Use Transition in Indonesia’s New Capital City IKN Nusantara: A Multidimensional Conflict Analysis. Land, 13(5), 606. https://doi.org/10.3390/land13050606

Tan, J., & Zhao, Z. J. (2024). Cost-Saving or Cream-Skimming? Partner Ownership and the Project Returns of Public-Private Partnerships in China. Journal of Chinese Political Science, 1-21. https://doi.org/10.1007/s11366-024-09892-4

Thai, H.-T., Ngo, T., & Uy, B. (2020). A Review on Modular Construction for High-Rise Buildings. Structures, 28, 1265–1290. https://doi.org/10.1016/j.istruc.2020.09.070

Théry, H. (2004). Brasilia: From Capital to Metropolis? | Brasília: De La Capitale À La Métropole? Vingtieme Siecle: Revue d’Histoire, 81(1), 93–105. https://doi.org/10.3917/ving.081.0093

Downloads

Published

2025-05-20

Issue

Vol. 25 No. 2 (2025): Vol 25, No 2 (2025): JURNAL TEKNIK SIPIL EDISI MEI 2025

Section

Vol 25, No 2 (2025): Vol 25, No 2 (2025): JURNAL TEKNIK SIPIL EDISI MEI 2025

License

Copyright (c) 2025 Jurnal Teknik Sipil

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.