When The Head Of The IKN Authority Resigned, Basuki Hadimuljono Even Said That The President Did Not Need To Kemping Anymore

Nusantara Zero Point in Sepaku District, North Penajam Paser Regency, East Kalimantan Province. (Antarenews Kaltim//Nyaman Bagus Purwaniawan)

JAKARTA The announcement of the resignation of the Head of the Archipelago State Capital Authority (IKN) Bambang Susantono and his deputy, Dhony Rahajoe, Monday (3/6/2024) shocked the public. In fact, President Joko Widodo plans to have an office in IKN soon.

Minister of State Secretary (Mensesneg) Pratikno said President Jokowi had issued a letter of honorable dismissal to Bambang and Jhony. However, Pratikno also explained that there was no detailed explanation which was the reason the two of them were compact in placing positions.

Bambang and Dhony were appointed by President Jokowi as heads and deputy heads of the IKN Authority for the period 2022-2027 on March 10, 2022.

To fill the void, the Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono was appointed as the Acting Head of the IKN Authority.

Bambang and Dhony's resignation was quite noisy for the community. The reason is, the IKN development project is being accelerated and the closest agenda is to hold a ceremony for the 79th independence anniversary of the Republic of Indonesia on August 17, 2024. Jokowi is also expected to be based in the archipelago as soon as possible.

Member of the Indonesian House of Representatives from the Prosperous Justice Party (PKS) faction Suryadi Jaya Purnama said Bambang and Dhony's resignation was a major blow to the IKN Authority. According to Suryadi, both of them have a crucial role in the IKN Authority.

Meanwhile, Chairman of the DPP National Awakening Party (PKB) Daniel Johan guessed about the background of Bambang and Dhony's resignation. Daniel highlighted the high target set by the government for the IKN project when discussing the resignation of the two.

Now, the continuation of a megaproject worth hundreds of trillions invites questions. Although in Jokowi's Instagram upload, it is ensured that the IKN project is not affected by Bambang and Dhony's resignation, a number of observers call this news a major blow.

According to economist and Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira, the resignation of the two is a negative signal for the development of IKN in East Kalimantan.

The sustainability of this project is questionable. This has had an unfavorable impact and is a negative signal for the sustainability of the IKN project, especially under the new government," said Bhima.

Bhima added that this situation would raise doubts among domestic and foreign investors about funding for the new capital city project.

"This indicates a problem that has prompted the Chairperson of the IKN Authority to resign. Either because of pressure or because they know that they are doing an impossible task," he said.

The government is speeding up the infrastructure development needed to relocate the first 12,000 civil servants this September. However, the resignation occurred amid a lack of private funding for President Jokowi's flagship mega project.

"This resignation will make people question the project," explained Arya Fernandes, analyst at the Indonesian Center for Strategic and International Studies.

"The question is how to convince investors that there is no problem," Arya continued.

Since September 2023, the IKN Authority has carried out five stages of breaking the IKN development project in East Kalimantan. According to Bambang Susantono, the total investment received reached IDR 49.6 trillion.

"There are already 32 institutions that have laid the first stone at IKN," said Bambang on March 13, 2024, as reported by Antara.

The Indonesian government needs at least IDR 466 trillion to build a new capital city. About 19-20 percent of this budget will be allocated from the state budget, while the remaining 80 percent is expected to come from a government cooperation scheme with business entities and direct investment.

Investment Minister Bahlil Lahadalia said the government would give priority to domestic investors, while foreign investors would be given high-tech projects such as the transportation sector.

Although the IKN Authority has just undergone a transition, the government ensures that the sixth ground breaking continues. President Jokowi is known to have flown to East Kalimantan to lay the first stone for a number of facilities from 3 to 5 June 2024. He also no longer spends the night in the camping area, but at the minister's house.

Acting Head of the IKN Authority, Basuki Hadimuljono, explained that currently the progress of IKN development has reached 80 percent for stages 1 and 2 with the use of APBN funds.

"Later, the President will go to IKN, so the bed is not camped again but is already at the ministerial office, showing that this is ready," said Basuki.