Danantara to Use State-Owned Enterprise Assets to Develop 12 Smart Cities

Jakarta (ANTARA) – BP BUMN and Danantara will use state-owned enterprise assets as the foundation for developing 12 future cities based on the smart-city concept.

“The 12 smart cities being developed in various locations will not be thousands of hectares in size. They will have schools and hospitals, which are important. We will also provide affordable housing for the lower- and middle-income classes,” Dony Oskaria, head of BP BUMN and Danantara’s chief operating officer, said in a statement confirmed in Jakarta on Wednesday.

The developments are intended to create integrated urban areas supported by modern infrastructure while also providing affordable housing for lower- and middle-income residents.

He said future-city development needed to address the broader needs of the public, including access to housing and adequate public facilities.

The assets will be consolidated as part of efforts to accelerate development of the future-city areas.

To speed up implementation, Dony called for the establishment of a business entity and the swift transfer of assets so that development can begin promptly.

The 12 future cities are designed to integrate housing, educational facilities, hospitals and other urban infrastructure.

Transit-oriented development (TOD) is also part of the planning, to improve connectivity between areas and create more vibrant urban environments.

One proposed development in Padalarang includes around 200,000 to 250,000 housing units. The homes are intended to be affordable, supported by infrastructure and TOD development.

Through the programme, BP BUMN and Danantara aim to turn state assets into productive areas that deliver direct benefits to the public.

The future cities are expected not only to become new centres of economic growth, but also to provide more equitable access to decent housing and public facilities, particularly for lower- and middle-income residents.