Danantara and BP BUMN plan 12 smart cities using state assets
The Padalarang development is expected to include approximately 200,000 to 250,000 homes, alongside infrastructure and a transit-oriented layout.
Indonesia plans to use assets belonging to state-owned enterprises to develop 12 smart cities, with affordable homes and public facilities central to the initiative, according to Dony Oskaria, Danantara's chief operating officer and head of BP BUMN.
Announcing the initiative on October 21, Dony said the developments would bring housing, schools, hospitals and other infrastructure together. He said the sites would not necessarily cover thousands of hectares, with the emphasis instead on essential services and homes for lower-to-middle-income residents.
Investment management agency Danantara and the State-Owned Enterprises Management Body, or BP BUMN, will consolidate existing assets for the developments. These include plantation company PTPN's properties in Walini and Padalarang, the Batang industrial area and land in Deli Serdang, Medan.
Dony called for dedicated business entities to be established promptly and for assets to be transferred so construction could begin without delay. The plans also incorporate transit-oriented development to improve connections between areas.
The agencies intend the developments to turn state assets into productive urban areas, support economic growth and broaden access to housing and public facilities.
