Public policy observer from Trisakti University, Trubus Rahadiansyah, explained to VOA, Saturday (10/6), that the use of foreign national workers (WNA) as supervisors in the Archipelago Capital (IKN) project would cause public resistance. This is because the project uses funds from the State Revenue and Expenditure Budget (APBN).
Trubus responded to the statement by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar, Friday (9/6), in a working meeting with the Budget Agency (Banggar) of the House of Representatives (DPR), regarding the use of foreign or expatriate workers in IKN projects.
Luhut admitted that he was forced to use foreign workers to ensure the quality of project work at IKN was good.
He added that new foreign workers may be employed in IKN projects if investors have entered.
“Secondly, it (the use of foreigners in the IKN project) will become a new problem where social jealousy will arise. Because not only the people around IKN, but most of them are in the midst of a lot of unemployment. I am worried that this will be politicized by the parties that have been “This brings about change or parties that are not in line with government policy,” said Trubus.
Employing expatriates in IKN projects can also give rise to negative perceptions that the government does not trust the abilities of its own citizens. Apart from that, it could become an object of ridicule from other countries.
Trubus said another problem was that foreign supervisors would make things difficult for local workers in terms of language and so on. If foreign supervisors are considered arrogant or something like that, this could actually give rise to new problems and threaten the safety of foreign supervisors.
To avoid polemics, Trubus suggested that the government employ a combination of Indonesian and foreign experts as supervisors for the IKN project. The main position is still held by Indonesians. The foreign workers are only consultants, while the supervisors are from Indonesia.
IKN development is slow
Executive Director of the Center of Reform on Economics (CORE) Indonesia Mohammad Faisal explained that the development process at IKN was progressing slowly to achieve significant targets. Apart from the time problem, IKN funding still uses funds from the State Revenue and Expenditure Budget (APBN) and no investors have yet entered.
He said the government hopes that next year the core area of IKN will have a presidential palace, MPR/DPR building and several other basic facilities built. Based on the circular, new civil servants are required to move to IKN no later than June 2024.
However, Faisal reminded that there is still a lot of development that must be accelerated after 2024 so that IKN can function and operate ideally in carrying out government functions.
“The problem is more whether he (IKN) can be faster or slower. Is it really more effective to move all central government functions to the new capital city or not. The question is more about that, in my opinion,” said Faisal.
According to him, the slow process of developing the IKN was due to time problems. Planned since 2015, the plans and design were completed five years later. Then when time was short, the COVID-19 pandemic came and it slowed things down even more.
The second problem in the IKN project, he added, was funding. Initially the portion of the APBN used was small, namely tens of percent, but now in reality the IKN project is 100 percent funded by the APBN until 2024. The problem is increasing because the cash flow is not smooth.
Faisal estimates that the completion of the IKN project will take a long time. Moreover, next year there will be a change in leadership, although it is possible that the IKN project will continue.
He emphasized that the problems in the IKN project were management and funding. In fact, these two issues should have been matured at the planning stage because moving the capital city is not an easy matter.
Therefore, continued Faisal, the government will need a lot of resources to realize the IKN project. Then the government must be able to raise funding from outside the APBN. If there is sufficient funding from the APBN and there are many investors, the IKN project can run quite smoothly.
Apart from funding issues, IKN project planning must be able to show seriousness, be well designed and be able to convince investors.
“I think the design shows seriousness in stages up to how it is sold, selling the vision. That is not yet very visible in IKN, so what will it look like in the future. We haven’t seen much of that yet. This is what makes investors doubtful, actually like How in the future,” said Faisal.
MSME participation
Head of the Archipelago Capital Authority (OIKN) Bambang Susantono said that the development of the archipelago has two engines to work together. First, the APBN is to build basic facilities and infrastructure with a target of construction until 2024. Second is domestic investors.
According to him, the Micro, Small and Medium Enterprises (MSME) sector can be involved in developing the archipelago. OIKN not only targets large investors, but also MSMEs.
Until the end of this year, OIKN has several commitments with international investors in developing the archipelago.
“There are at least five countries that are in the process (of agreement), including South Korea, then Japan, China, Germany, and also the UAE (United Arab Emirates),” he explained.
The current cooperation agenda carried out by OIKN with various institutions is, in creating blueprints and master plan for the archipelago. Another thing is in campaigning for the process and realization of the Sustainable Development Goals (Sustainable Development Goals/SDGs.
Especially for investors, Nusantara will become a city that consistently and continuously implements its commitment in the field Environment, Social, and Governance (ESG). (fw/ft)
