Indonesia and South Korea Partner to Construct Nusantara’s First Underwater Toll Road

Berita Baru, Jakarta – The government is collaborating with South Korea to construct Nusantara’s first underwater toll road, projected to cost approximately USD 690 million, according to an announcement by an infrastructure director from the Public Works and Housing Ministry.

Wida Nurfaida stated on Wednesday (August 7) at the Indonesia-Korea Technical Exchange Seminar & Business Networking 2024, “The estimated cost to complete the immersed tunnel is around Rp 11 trillion,” as reported by Tempo.co. “The plan is to partner with the South Korean government.”

She further mentioned that the envisioned toll road network for accessing the new capital would stretch 88.54 km, with 67.65 km already completed at an average cost of Rp 305 billion per kilometer. This leaves about 20.89 km to be constructed, requiring an investment of Rp 6.38 trillion, according to Kompas.com.

The tunnel is part of a 47-km highway linking Nusantara with Sepinggan International Airport in Balikpapan. Immersed tunnels, commonly used for undersea roads and railways, are typically constructed in segments on land, then sealed and floated into position before being submerged and assembled.

Danis Hidayat Sumadilaga, head of the ministry’s Nusantara infrastructure development task force, had indicated in August of the previous year that construction would begin this year. The tunnel is designed to be rectangular, accommodating six lanes, with each segment ranging from 1-1.5 km in length. The project is estimated to take two to three years to complete and will be funded by the state budget, though private sector involvement is welcomed.

Highways Director General Hedy Rahadian had mentioned last September that construction on the underwater toll road would commence after 2024. Meanwhile, South Korea has surged as a major foreign investor, surpassing the United States and Japan in the second quarter of this year, becoming the third-largest foreign investor with a total FDI of $1.3 billion.

BCA chief economist David Sumual noted on July 29 that South Korean FDI might eventually match that of China and Japan. However, in the first half of 2024, South Korean investment was still behind that of Singapore, China, the US, and Japan, totaling $8.9 billion, $7.7 billion, $2 billion, and $1.8 billion respectively, as reported by The Jakarta Post.