SG Targets Indonesia's 46 Trillion Won New Capital Project... Launches 960km Road Infrastructure Initiative

Ascon specialist company SG is set to break into the large-scale road infrastructure market in Indonesia, including the approximately 46 trillion won capital relocation project. Leveraging its local production and construction system, SG is targeting a total of 960 kilometers of road projects—such as those in the new capital Nusantara and highway developments.

SG announced on September 2 that it will officially begin local operations in response to the increased demand for road and transportation infrastructure due to Indonesia’s large-scale capital relocation.

Indonesia is in the process of relocating its capital from Jakarta to Nusantara in East Kalimantan. The total project cost is estimated at about 34 billion dollars (approximately 46 trillion won), and plans are underway for new city development as well as building transportation infrastructure such as roads.

According to SG, major Indonesian road infrastructure projects this year amount to a total of 960 kilometers. These projects include a 560-kilometer section of the Trans-Sumatra Highway, a 200-kilometer expansion of the southern coastal road on the island of Java, a 100-kilometer connecting road to the new capital Nusantara, and an additional 100 kilometers for other road projects.

To meet this local road infrastructure demand, SG has established a fully localized business structure, covering everything from production to construction. Building on a joint venture formed with Posco International, SG has set up the capacity to both produce and build "Eco-Steel Ascon," an eco-friendly ascon product made using steel slag, directly in Indonesia.

Eco-Steel Ascon is a product that replaces natural aggregate with steel slag generated in local steel mills. With restrictions on aggregate extraction in Indonesia making it difficult to secure natural aggregate, SG expects that ascon utilizing steel slag will be highly competitive in the local road construction market.

SG is also working to expand its local network. The company is discussing cooperation measures with local Indonesian affiliates for the production of Eco-Steel Ascon and road infrastructure projects. The plan is to combine the business networks of local enterprises with SG’s ascon manufacturing and construction expertise, expanding their scope of collaboration from project discovery to production and on-site implementation.

In particular, as continuous road construction is expected due to the large-scale capital relocation project, SG aims to use its local production system to strengthen its competitiveness in securing orders. The company has positioned Indonesia as a core base for expansion into the Southeast Asian market and will gradually scale up its local operations.

An SG representative stated, "With Indonesia’s 46 trillion won capital relocation project driving large-scale road construction, we expect ascon demand to grow significantly in this market. Based on our local production system and Eco-Steel Ascon’s technological competitiveness, we will expand our participation in major road infrastructure projects and foster Indonesia as a key hub for entry into the Southeast Asian market."

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