Investor Presentaiton
Climate Sustainability
Case study: New capital city could offer a model for green,
smart and inclusive cities
Analysis of business case for Indonesia's planned new capital, using five-case model
Five-case model is a project planning methodology developed by the UK government to outline cases
for change, supported by the World Bank and the G20
Strategic case
•
Critical water supply in current capital
Strengthened national unity and
redistribution of socio economic
opportunity
Economic case
•
Indonesia's position in South-east Asia's Smart City
Index offers room for improvement, 2020
1
Change in
rank since
2019
0
Financial case
Rank (of 109)
.
Strategic Financial
Presence of sufficient funding to
finance expected project cost
case
case
Singapore
Commercial case
•
Viability of project completion, given
Commercial
case
54
capacity of available resources
Kuala Lumpur
16
$33bn, 10-year project
71
Bangkok
announced in April 2019; 2024
14
target date for first occupants
84
Hanoi
-18
Economic
case
Human-centred model for other
Indonesian cities
Sustainable construction, renewable
Management
case
energy and waste management
Cities such as West Java's capital, Bandung, and South Sulawesi's
capital, Makassar, are working to leverage technology for better quality of
life: Bandung digitised public services to reduce bureaucratic red tape,
lower corruption and boost efficiency; Makassar hopes to leverage 5G
technology, launched in the city in December 2021, to revive agriculture,
trade and tourism, and enhance local lifestyles.
New capital city's development sources, 2019
26.4%-
54.4%
PwC
Private sector
19.2%
Management case
Strong project management
office
•
Efficient and transparent
organisational structure
The new city is being designed to:
Be
Pollution-free
.
OBG ESG Report
Public-private partnership
State budget
Environmental and social risks
Concerns remain about the impact on local
biodiversity, despite President Jokowi's
commitment to protect Borneo's rainforests
and endangered animals, as well as
indigenous communities
OXFORD
BUSINESS
GROUP
• Congestion-free
Free from health
risks such as air
pollution and
lack of sanitary
facilities
Plans to only allow
EVs and for 80% of
movement of people
to happen via public
transportation,
walking or cycling
Sources: PwC; Reuters
94
Jakarta
-13
104
Manila
-10
.
Expand
•
•
·
·
Innovative sustainable construction projects
Water cycle management
Technologically integrated urban management
Effective and eco-friendly public services
Public health care as a priority
.
Large public spaces
•
Inclusive society
Integrated sustainable living solutions
Smart capital
President Jokowi officially announced
the migration of Indonesia's capital
city from Jakarta to Borneo's East
Kalimantan in August 2019. This
$33bn, 10-year project aims to offer
a green, tech-integrated and socially
inclusive solution to the overcrowding,
traffic congestion, high pollution and
health risks of Indonesia's existing
capital city. While concerns remain
about the impact on local biodiversity,
the new capital's ESG-aligned
urban planning and construction
could serve as a blueprint in smart
city development for other cities in
Indonesia and the region. The
ambitious project, partially delayed
by the pandemic, will be financed
through public-private partnerships
and global foreign investment, as
well as the government budget.
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