Those Who Wonder The Origin Of The IKN Development Budget, Jokowi Opens His Voice

President Jokowi while cycling at the Bogor Palace (Photo: BPMI Setpres/Muchlis Jr)

JAKARTA - President Joko Widodo (Jokowi) said as much as 80 percent of the development budget for the National Capital (IKN) of the Archipelago came from the Government and Business Entity Cooperation (PPP) scheme and direct investment. While the remaining 20 percent is estimated from the state budget.

President Jokowi in the inauguration of the Nasdem Tower which was monitored online in Jakarta, Tuesday, said as much as 20 percent of the IKN budget originating from the APBN was intended to build core government areas, such as the Presidential Palace and ministry/institutional buildings.

"Many have asked me, where does the budget come from? For the core area where there are palaces and ministerial buildings, it's all from the APBN, our estimate is 20 percent of the total budget needed. So 80 percent is good for PPP, both PPP (Public-Private Partnership), as well as from direct investment by investors," said President Jokowi, Tuesday, February 22.

The President explained that the total land area of IKN reaches 256 thousand hectares. However, as much as 200 thousand hectares of the total land area will be left as green forest.

"What we are using is 256,000 hectares. Later, approximately 50,000 hectares will be used, the remaining 200,000 will be left as green forest. We will fix the bad ones, we will fix the bad ones," said President Jokowi.

The government, said the President, will also build a nursery or plant nursery location in IKN with a production capacity of 20 million seeds or seeds every year.

The President said that based on the report from the Minister of Environment and Forestry, Siti Nurbaya Bakar, the construction of the nursery is now almost complete.

"This means that what we put forward is a city that is very environmentally friendly," said President Jokowi.

The condition of the land in the capital city, called Nusantara, in East Kalimantan is hilly. Therefore, the President said, the design of the IKN development also adjusts to the existing hills and land surface.

In addition, the waterfront area will also be created naturally, while maintaining the existing forest ecosystem. The government will also rehabilitate several damaged forest ecosystems, he said.

President Jokowi further emphasized that the transfer of IKN is aimed at equitable access to infrastructure, economic benefits, and social justice in Indonesia.

"This transfer is for equity, both infrastructure, economy, and social justice," he said

The transfer of IKN to Kalimantan Island already has a legal umbrella in the form of Law Number 3 of 2022 concerning IKN.

On January 18, 2022, the Plenary Session of the DPR approved the IKN Draft Law to be passed into the IKN Law, which was then signed by President Jokowi on February 15, 2022.