Korea Advances into Indonesia Jakarta Tap Water Supply Project, a 'New Southern Policy' Core Initiative

Sugong Wins Final Contract for Indonesia's 'Karian Metropolitan Water Supply Project'
"Government-Public-Private Cooperation 'Water Industry Team Korea' First Overseas Expansion"
Total Project Cost 200 Billion KRW... Completion Scheduled for Second Half of Next Year

Perspective view of the Karian Multipurpose Dam in Indonesia. (Photo by Daelim Industrial)

[Asia Economy Reporter Moon Chaeseok] South Korea has secured a project to supply tap water to 2 million people in Jakarta, the capital of Indonesia, and its surrounding areas, a key region in the New Southern Policy.

The Ministry of Environment announced on the 7th that a consortium led by Korea Water Resources Corporation won the 200 billion KRW-scale "Karien Metropolitan Waterworks International Competitive Bidding Project" on the 5th.

Business Structure Diagram. (Source: Ministry of Environment)

The project supplies water made from the Karien Dam, scheduled to be completed in the second half of next year, to three local governments: Jakarta Province, Tangerang City, and South Tangerang City, providing about 400,000 tons per day (enough for 2 million people).

The dam construction and pipeline installation costs from the dam to the water treatment plant were secured through the Export-Import Bank of Korea's Economic Development Cooperation Fund (EDCF). The water treatment plant and pipeline construction and operation from the plant to the local governments, won in this bid, will be conducted as a public-private partnership (PPP).

Business contract and implementation entity. (Source: Ministry of Environment)

Since the Korea-Indonesia summit in November 2017, Korea Water Resources Corporation proposed the project to the Indonesian government, resulting in this achievement. This is the first case of exporting the "Korean-style metropolitan waterworks" overseas.

An official from the Ministry of Environment explained, "Based on intergovernmental cooperation, a specialized public water management institution won the project, and companies will participate in design, procurement, and construction (EPC), making this a representative case of the 'Water Industry Team Korea' advancing overseas."

Countries targeted by the New Southern Policy. (Source: Ministry of Environment)

The Ministry of Environment has been promoting entry into the New Southern water industry market by setting three major policy directions: 'customized approach, Team Korea advancement, and expansion of the Korean-style Green and Digital New Deal.'

Minister of Environment Cho Myung-rae said, "We will successfully carry out this project to contribute to solving local water issues based on Korea's water technology," adding, "We will further accelerate the water industry's entry into the New Southern market."

This content was produced with the assistance of AI translation services.