Construction Of Phase IKN II Needs Certainty That The State Budget Is Used Wisely

The capital city of Nusantara (Photo: Antara)

JAKARTA - The construction of the capital city of the archipelago (IKN) in the second phase should be carried out with a more efficient approach.

Achmad also suggested that the government can maximize private involvement through a public-private partnership (PPP) scheme or known for its cooperation with governments and business entities (PPP), and ensure that this project really provides real benefits for the wider community.

"Infrastructure development is important, but it is even more important to ensure that every rupiah from the APBN is used wisely for the benefit of the people, not just the political ambition of a handful of elites," said Achmad quoting Antara.

He added that the Prabowo government must also show partiality to the people by reviewing the IKN budget and ensuring that the fiscal policy taken is truly beneficial for the welfare of the nation.

President Prabowo Subianto, in a limited meeting at the Presidential Palace, Jakarta, Tuesday (21/1), approved the budget for the continuation of IKN development for the 2025-2029 period of IDR 48.8 trillion. The development allocation for this stage is lower when compared to the first stage during the 7th President Joko Widodo administration.

According to the Ministry of Finance (Kemenkeu) records, the total allocation budgeted for IKN in 2022 to 2024 is IDR 75.8 trillion. In detail, the realization in 2022 is IDR 5.5 trillion, the realization in 2023 is IDR 27.0 trillion, and the temporary realization in 2024 will reach IDR 43.3 trillion.

Achmad assessed that the construction of the first phase of the IKN with a budget of IDR 75.8 trillion had not had a significant impact on the national economy. Therefore, the second phase of the IKN budget allocation must be evaluated more critically.

According to him, the best choice is to reallocate the second phase of the budget to sectors that are more in need, such as education, health, and social protection.

"If you look at the overall national budget needs, there are many sectors that need funding, such as education, health, and social assistance," said Achmad.

In the education sector, he reminded that Indonesia is still facing problems with access and poor quality education. The education budget in 2024 is projected to be around IDR 660 trillion, but most of it is absorbed for teachers' salaries and employee allowances. Meanwhile, the allocation for improving educational facilities and improving the quality of learning is still limited.

"If IDR 48.8 trillion is diverted to the education sector, it can be used to build more than 50,000 new schools or improve school facilities in remote areas," he said.

In the health sector, the health budget, which ranges from Rp200 trillion per year, is still followed by limitations in the procurement of medical devices, construction of hospitals in remote areas, and incentives for health workers.

"If the second phase of the IKN budget is diverted to the health sector, it can be used to build 100 type C hospitals throughout Indonesia, increasing the capacity of health services for millions of people," said Achmad.

As for social assistance, he said that the social protection budget such as the Family Hope Program (PKH) and Non-Cash Food Assistance (BPNT) was still lacking in reaching all people in need.

"If IDR 48.8 trillion is transferred to social assistance, at least 10 million additional poor families can get assistance over the next five years," said Achmad Nur Hidayat.