The Indonesian Capital City Authority Agency (OIKN) stated that the total investment entering Indonesia’s new capital city candidate had reached IDR 49.6 trillion. Will this new investment facilitate the continuation of IKN development in the hands of the elected president?
Head of the IKN Authority, Bambang Susantono, reported that the investment value that has been entered for the construction of the IKN mega project, in North Penajam Paser, in East Kalimantan has reached IDR 49.6 trillion.
“We know that there have been five times groundbreaking with a value approaching IDR 50 trillion, to be precise IDR 49.6 trillion. There are approximately 32 institutions that have implemented it groundbreaking fifth,” said Bambang who was met after an Internal Meeting with President Joko Widodo, at the State Palace, Jakarta, Wednesday (13/3).
Bambang explained that immediately after laying the first stone, his party would immediately continue development in line with the infrastructure development that had been built by the Ministry of PUPR, so that it was hoped that a living ecosystem there would be created quickly.
“We also see that we can realize this investment as soon as possible in the field, so that an ecosystem is formed. “So, besides the Palace, then ministerial offices, infrastructure built by the Ministry of PUPR and so on, of course there will also be public facilities so that the city can become a city that is livable and loved,” explained Bambang.
Boosting Investment in IKN, Jokowi Ready to Determine Responsible Person and Accelerate Land Status Determination
Previously, PUPR Minister Basuki Hadimuljono actually said that President Jokowi often received complaints from investors regarding slow investment procedures or bureaucracy which was considered too complicated.
Not wanting investors to run away, President Jokowi also gave two directions. Basuki said first, the government would prepare a person in charge (person in charge/PIC) for each investor. The PIC’s task is to handle and assist investors in investing in IKN.
“So is it one PIC for one investor, one PIC for five investors, or one PIC for 10 investors so that investors can communicate intensely with IKN officials,” explained Basuki.
Second, President Jokowi asked for an accelerated determination of land status for investors. “The land is sold, the price is set by the Authority as long as it does not violate the rules. “So the President wants us to work quickly but not violate the rules,” he explained.
The main infrastructure at IKN, such as clean water facilities, airports and toll roads, is projected to be completed in June-July 2024. “That’s why on August 17, God willing, it can be done there, and he will have an office there too,” said Basuki.
How will IKN development continue after the presidential election?
City Planning Expert at Trisakti University Nirwono Yoga still doubts the continuation of IKN development, even though the 2024 Presidential Election runs smoothly. The main reason is because investors are usually not too interested in government capital. Apart from the limited population, social interaction is only “live” at certain times.
“The question is, wherever it is called a government city, it will not be attractive to investors, because of the government’s lively culture, not in the context of a city that can be said to be a living city, because we know that if investors see real life then most of the people will “Those who live there are ASN, so at certain hours they can’t possibly wander around the mall or cafe,” said Nirwono.
“So, investors will think about what form of investment they will invest there, because they have to calculate how much investment they will put in there, then how long will it take for them to make a profit,” he added.
He added, learning from other countries, a government capital should be built with a full budget from the government. This is due to security and state confidentiality factors which cannot be known by many parties.
“I mean the government builds government cities, but what the government does is encourage investment to come to government cities. That’s a contradiction. Because ideally, a government city should be fully funded by the APBN, only then can the supporting cities that will be built become commercial cities specifically for investors. “If what I see is that the government city is being sold, that’s what I think is a mistake,” he explained.
This urban planning expert is also doubtful about the continuation of IKN development in the hands of presidential candidate Prabowo Subianto, who is currently projected to win the election and become the next president. The reason is, Prabowo-Gibran from the start has always promoted their flagship program in the form of free lunches which costs up to IDR 400 trillion per year. Meanwhile, the budget needed to build IKN reaches IDR 466 trillion.
Nirwono Yoga believes that there will be complicated problems in terms of budget allocation.
“Later it will be seen whether the development will run smoothly or not in the next five years. Because the next homework is about budgeting. “If we look at it now, Pak Prabowo is already planning a free lunch program,” he said.
“If the funding problem turned out to be the same figure, the (new) government would spend that large amount of funds just for free lunches within one year. That’s what surprise, while from the start it was said that the IKN was only 20 percent, President Jokowi went all over the place, to the point where we could say he asked for help to build the IKN. “This means that here there seems to be distrust regarding the development of IKN by relying fully on the APBN as a source of funds for central government development,” he concluded. (gi/em)
