Indonesia will collaborate with South Korea to build the country's first underwater toll road. The Indonesian government, through the Ministry of Public Works and Housing (PUPR), has signed an agreement with the South Korean government for this ambitious project in Nusantara.
The project, estimated to cost around US$690 million, will be the first underwater tunnel ever constructed in Indonesia.
IKN Toll Road Project Details
This tunnel project is part of the Ibu Kota Nusantara (IKN) Toll Road for segments 4A and 4B in the eastern region. While all other toll segments are already under construction, segments 4A and 4B are still in the planning stages for the tunnel's development.
The Director of Road Development at the Ministry of PUPR, Wida Nurfaida, stated that the toll road project covers a total of 88.54 km, with 67.65 km already built. The average construction cost per kilometer is approximately Rp305 billion, while the remaining 20.89 km, yet to be constructed, will require an investment of Rp6.38 trillion (US$339 million).
The project is expected to begin in 2025.
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Design and Concept of the Underwater Tunnel
The tunnel is part of a 47 km highway connecting Nusantara to Sepinggan International Airport in Balikpapan. Adopting a design similar to the Geoje Tunnel in Busan, South Korea, this submerged tunnel is designed to align with the forest city concept of IKN Nusantara.
Although a bridge option was available, the government chose to build a submerged tunnel to protect the proboscis monkeys and the endemic flora and fauna in Balikpapan Bay. According to Law No. 3 of 2022, the development of IKN must prioritize nature, technology, and environmental sustainability while avoiding the negative impacts of urbanization and extreme weather.
In the future, toll road users will be able to cross Balikpapan Bay to reach the IKN Central Government Area through the planned submerged tunnel.
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South Korea's Investment in Indonesia
In the second quarter of this year, South Korea became the third-largest foreign investor in Indonesia, with a total foreign direct investment (FDI) of $1.3 billion, surpassing the United States and Japan.
It is predicted that South Korea's investments could match those of China and Japan in the long term. However, in the first half of 2024, South Korean investment still lagged behind that of Singapore ($8.9 billion), China ($7.7 billion), the US ($2 billion), and Japan ($1.8 billion).
