Skip to main content

BP BUMN and Danantara plan 12 smart-city developments in Indonesia

A proposal for Padalarang includes around 200,000 to 250,000 homes, with affordable housing and public facilities among the programme’s priorities.

By Maya Santos

Illustration of housing, schools and public transport in an urban development
Photo: CNBC Indonesia

Indonesia’s BP BUMN and Danantara plan to use state-owned enterprise assets to develop 12 smart-city areas incorporating affordable homes, schools and hospitals, according to Dony Oskaria, head of BP BUMN and chief operating officer of Danantara.

In remarks carried by BP BUMN’s official Instagram account on 16 October 2026, Dony said the developments would serve lower- and middle-income residents. He said the areas would not span thousands of hectares and stressed the importance of access to housing and public facilities.

Assets earmarked for the next development phase include PTPN assets in Walini, Padalarang, the Batang area and land in Deli Serdang, Medan. Dony said these would be consolidated to speed up development. He also called for companies to be established and asset transfers to proceed promptly so work could get under way.

The plans combine housing with education facilities, hospitals and other urban infrastructure. Transit-oriented development is also part of the proposed approach to improve connections within the areas. One Padalarang proposal envisages around 200,000 to 250,000 homes under an affordable housing scheme, supported by infrastructure and transit-oriented development.

Keep reading: Property

All Property stories

Latest in Finance

All latest