Nusantara’s Electric Vehicle Development Drawing International, Domestic Investors: Indonesian Officials

Several domestic and international companies have shown interest in developing the electric vehicle (EV) ecosystem in Nusantara, Indonesia’s new capital city in Kalimantan, to realise its vision of a smart and green city, government officials said.  

“There are a lot of companies or private investors who are interested in getting involved in Nusantara, especially in EV development,” Deputy for Funding and Investment of the Authority of Nusantara (OIKN) Agung Wicaksono said in an online seminar on Wednesday (Apr 24) as reported by Antara news agency.

Interested parties are both domestic and international and comprise state-owned enterprises as well as private companies and investors, he added.

One of the companies is major Indonesian taxi operator Bluebird, which has already broken ground on its projects in Nusantara. Bluebird’s project is to provide electric-powered bus rapid transit services to support urban transportation, electric-powered taxis, electric-powered rental cars, and public buses connecting the Balikpapan-Nusantara route.

Meanwhile, ComfortDelGro from Singapore is among the foreign companies which have also expressed interest in investing in Nusantara’s EV transportation sector, Mr Agung noted.

He added that in the EV manufacturing industry, companies such as BYD from China, PT Kalista from Indonesia and Škoda from the Czech Republic are keen to participate. 

Authorities have highlighted that EVs are central to realising Nusantara’s vision as a smart and green city with an environmentally friendly transport system.

According to OIKN, private vehicles in Nusantara will be restricted while public transportation will make up 80 per cent of traffic. Most modes of transport in the city will be non-fossil fuel vehicles or electric, it added. 

President Joko Widodo, or Jokowi as he is popularly known, had previously encouraged Nusantara residents to only use EVs for travel within the city.

Last year, Mr Jokowi inaugurated a 50-megawatt solar power plant project in Nusantara. Kompas reported that the plant will produce about 93 gigawatt hours (GWh) of green energy per year and will reduce carbon dioxide emissions by 104,000 tonnes annually

President Jokowi has also invited Apple CEO Tim Cook to invest in the new capital city. He made the invitation during their meeting in Jakarta last week.  

The government is planning for Nusantara to be occupied as Indonesia’s new capital city in August, coinciding with the country’s 79th Independence Day celebrations.

More than 10,000 Indonesian civil servants from 38 ministries and institutions will move to Nusantara in September, marking the first phase of populating the city.

Nusantara is being built in five stages. The first is about three-quarters complete, covering basic infrastructure like the presidential palace, offices and housing. Toll roads and other major road networks are also expected to be ready by later this year.

The last stage of Nusantara’s construction is slated to be completed by Indonesia’s centennial in 2045 when it is connected with surrounding cities such as Balikpapan and Samarinda. – CNA

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