IKN Construction Needs Rp 466 Trillion, Government Urges Public to Contribute

JAKARTADAILY.ID - The Head of Nusantara Capital City Authority, Bambang Susantono, encouraged the public to contribute to cover the new capital city's construction cost on March 29, 2022, at the Merdeka Palace, Jakarta.

The government has budgeted the IKN's construction by Rp 466 trillion, with Rp 89.4 trillion taken from the state's budget and Rp 253.4 trillion obtained through the government's cooperation with business entities or KPBU.

The rest of the uncovered fund, worth Rp 123.2 trillion, is expected to be obtained through private enterprises or the public.

Bambang said the public might hold crowdfunding on a particular scale to participate in constructing various facilities at IKN.

He then explained that funding supports from the various line is essential due to the amount of time taken to build a city, which won't be short. The IKN construction is a long step that will take 15 to 20 years to complete.

"We have a plan until 2045, this [the plan], of course, requires financial support from various elements of society," said Bambang, quoted from Antara, Tuesday, March 29, 2022.

Furthermore, the public contribution system is also written in Law Number 3 of 2022 concerning IKN.

It states that IKN development funds will be disbursed from the State Revenue and Expenditure Budget, the Regional Revenue and Expenditure Budget, Government and Business Entity Cooperation, and the public.

The suggestion mainly aims at Indonesian migrant workers who desire to own a diaspora house in the IKN area.

"If they want to have a diaspora house, we will facilitate it as far as design and things in principle to maintain harmony in the city's design, regarding the costs [of the houses] they have to find themselves," said Bambang explained.

According to Bambang, such things are considered a good initiative by society. Contributions will be supported by the existence of a particular new agency for cooperation with private and community partners.

"The term [is] agile. The government will act as a regulator and also as urban management. There will [also] be a business entity under it which is expected to be agile in cooperating with various private and community partners," he said.

IKN covers approximately 256,142 hectares and a marine area of about 68,189 hectares in the North Penajam Paser and Kutai Kartanegara Regencies.

The article was translated from Pikiran-Rakyat.com's article titled "Bangun IKN Butuh Rp466 Triliun, Pemerintah Ingin Masyarakat Ikut Urun".