Indonesian Coordinating Economic Minister Chairul Tanjung said that construction of the Giant Sea Wall project, part of the National Capital Integrated Coastal Development (NCICD) masterplan, will start on 9 October 2014. This ambitious mega-project, situated in the bay of Jakarta, aims to enhance flood prevention, foster urban development and - more generally - to turn Jakarta into a more prestigious metropolis. The project requires a total of USD $40 billion in investments. Private participation is vital for financing of the project.
Apart from private sector involvement, the project will also be funded by the country’s state budgets (APBN) for many more years to come.
The NCICD Masterplan is important to overcome annual floods in Jakarta brought about by a lack of quality infrastructure and water management. These floods are only becoming worse as the city is sinking at a rate of between 7.5 and 14 centimeters per year due to deep groundwater extraction in combination with pressure from high-rise buildings in Jakarta, thus jeopardizing the well-being of future generations, or, at least necessitating the migration of more than four million people as the northern part of the city will be gradually submerged by the sea if no immediate action is taken (the total population of Jakarta numbers around ten million people).
The Giant Sea Wall serves as a reservoir for Jakarta but will also have many other functions. The Masterplan includes development of residential areas, industrial areas, waste treatment, green areas, roads, an airport, island reclamation (17 artificial islands), and more.