Antara News·Indonesia·Thursday, October 22, 2026 at 12:40 AM UTC

Danantara, BP BUMN to leverage state assets for 12 smart cities

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Putu Indah Savitri, Yashinta Difa

Jakarta (ANTARA) - Indonesia's investment management agency Danantara and the State-Owned Enterprises Management Body (BP BUMN) will utilize SOE assets as a foundation to develop 12 future-oriented smart cities, focusing heavily on affordable housing and essential public infrastructure.

COO of Danantara and Head of BP BUMN Dony Oskaria announced the initiative on Wednesday (October 21), emphasizing that the project aims to create integrated urban areas that address broader societal needs by combining modern infrastructure with accessible housing options.

"These 12 smart cities, to be established across various locations, will not necessarily span thousands of hectares. The focus is on essential amenities—such as schools and hospitals—as well as the provision of affordable housing for the lower-to-middle-income population," Dony said in a statement.

The next phase of development will leverage various existing SOE assets, including properties held by plantation firm PTPN in Walini and Padalarang, the Batang industrial area, and landholdings in Deli Serdang, Medan.

These assets will be consolidated to accelerate the establishment of the new urban hubs.

To expedite implementation, Dony has urged the prompt establishment of dedicated business entities and the transfer of assets so that construction can commence without delay.

The 12 future cities are designed to integrate residential spaces, educational facilities, healthcare centers, and other urban infrastructure.

Planners are also incorporating the concept of transit-oriented development (TOD) to enhance regional connectivity and foster vibrant urban environments.

Among the planned locations, the project in Padalarang is slated to provide approximately 200,000 to 250,000 housing units supported by necessary infrastructure and a TOD-based layout.

Through this initiative, Danantara and BP BUMN aim to transform state assets into productive areas that deliver direct public benefits, serving as new centers for economic growth while expanding equitable access to decent housing and facilities.

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