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Daewoo E&C seeks to join Indonesia's capital relocation

Dec. 5, 2023 - 14:32 By Kim Hae-yeon
Daewoo E&C Chairman Jung Won-ju, who doubles as chairman of Herald Corp., delivers a welcoming speech at the Korea-Indonesia Economic Cooperation Forum held in Jakarta, Indonesia, Thursday. (Lee Sang-sub/ The Korea Herald)

Daewoo Engineering & Construction Chairman Jung Won-ju has recently engaged with industry leaders and officials in Indonesia to broaden the scope of the company's global construction projects, focusing on the extensive development of the Southeast Asian country's new capital that is expected to be inaugurated as early as August next year.

Indonesia is actively preparing to relocate its capital from Jakarta to Nusantara, a purpose-built city in the East Kalimantan area. The planned relocation is expected to create new opportunities for local construction companies, encompassing a diverse range of infrastructure and urban development initiatives.

A day ahead of the Korea-Indonesia Economic Cooperation Forum in Jakarta on Nov. 30, hosted by Herald Corp, the publisher of The Korea Herald and Herald Business, Jung participated in discussions with key figures in Indonesia's real estate and construction sectors.

Talks were held with Budiarsa Sastrawinata, director of Ciputra Development, a prominent real estate developer, and Muktar Widjaja, CEO and executive director of Sinar Mas Land, a property developer engaged in real estate projects in Indonesia and Singapore, with the aim of exploring potential collaborations for development projects in Indonesia.

Jung reportedly emphasized Daewoo E&C's global competitiveness, citing achievements in the new city complex development project in Hanoi, Vietnam named Starlake City. He also highlighted the company's expertise in constructing immersed tunnels and liquefied natural gas plant domains. He emphasized Daewoo E&C's intent to participate in diverse infrastructure projects in Indonesia, including smart cities and renewable energy initiatives.

At Thursday's forum, Jung met with Agung Wicaksono, deputy chairman for funding and investment at the Nusantara National Capital Authority, to convey Daewoo E&C's interest in contributing to the construction of the new capital. The deputy chairman underscored the necessity of housing supply for the relocated capital city, and expressed a willingness to collaborate on incorporating Korea's advanced housing culture into Indonesia's new capital.

Meanwhile, Daewoo E&C signed a business agreement with Hutama Karya, Indonesia's largest state-owned construction company in the infrastructure sector, to collaborate on future infrastructure projects linked to the capital relocation initiative.

"Indonesia is the land of opportunity, a resource-rich country with the potential to be a hub for substantial projects," a Daewoo E&C official said. "The visit served as groundwork for Daewoo E&C to excel in the construction projects of globally competitive infrastructure, including LNG plants, immersed tunnels and urban development projects."