Logistics Hub in Nusantara, a $22 Million Facility in Indonesia’s New Capital City

Home » Projects » Logistics Hub in Nusantara, a $22 Million Facility in Indonesia’s New Capital City

A Logistics Hub in Nusantara, Indonesia broke ground last January 2024.

The mega hub is Indonesia’s answer to overcoming high logistics costs, inefficient supply chains, and connectivity challenges, paving the way for an integrated and economical future.

Breaking Ground on the Logistics Hub in Nusantara City

One of the many projects in the new capital city Nusantara, is the Nusantara Logistics Hub. The super hub is a collaboration between PT Pos Indonesia, a state-owned postal company, and Bina Karya Persero, a construction consulting firm. Nusantara Logistics Hub is located in North Penajam Paser District and will support the new city.

Indonesia President Joko Widodo (Jokowi) attended a groundbreaking ceremony for the Nusantara Logistics Hub. The ceremony was held last January 2024. During the ceremony, President Jokowi stated that the logistics hub will significantly strengthen domestic supply chains in Nusantara and other regions in Indonesia.

Rising logistics costs have been a problem for Indonesia. In 2014, logistic costs for the country reached 24% of the GDP, which is significantly larger than other ASEAN counterparts. As of 2023, the country ranks 6th in the Logistics Performance Index (LPI) vs other ASEAN economies after Singapore, Malaysia, Thailand, Vietnam, and the Philippines.

The project was first announced in the first quarter of 2023 and is expected to be completed by the second quarter of 2026. It is estimated at a value of $22.36 million, the Nusantara Logistics Hub will be a green facility that will feature advanced technologies such as robotic deliveries, sorting machines, and electric vehicles.

Read also: Building Tomorrow: 10 Cities Under Construction Across the Globe

Indonesia’s New Capital City

Nusantara is a planned city that will be the future capital of Indonesia. In August 2024, Nusantara will be inaugurated as Indonesia’s new capital city. This new city will replace Jakarta as the national capital. It is located on the east coast of Kalimantan Island (Borneo). The city will cover a total land area of 256,142 hectares and a marine area of 68,189 hectares. The total estimated worth of this massive project is US$35 billion. Construction of the city began in July 2022 and started with land clearing and access road building.

The move to the new city is ongoing, with 12,000 civil servants expected to move by 2024. The Ministry of Public Works and Housing and the Office of the President of Indonesia are also expected to move to Nusantara within the year.

The new capital city is the solution to the overwhelming environmental issues in Jakarta. The city of 30 million people, frequently experiences floods, traffic, pollution, and water shortages. Jakarta, deemed “the sinking city”, is at a whopping 40% below sea level. The city sinks to as much as 15 centimeters (6 inches) yearly.

Plans for Nusantara is to build a “green” metropolis. It will feature walkable spaces and luscious forests, with 75% of the city dedicated to green areas. Developing these projects requires massive stretches of land that harm biodiversity by misplacing the wildlife in the area.

Gone are concrete city jungles; Nusantara city will flourish as a lush, green urban city.

Read also:

Capital city of Nusantara: A green oasis in Indonesia’s future

Indonesian Consortium Initiates $1.3 Billion Project in New Capital City