Jakarta Regional Budget Nominal Will Shrink After Capital Moves, DKI DPRD: Local Government Must Be Ready, Don't Be Confused

The inaugural meeting of the Jakarta Special Committee after the transfer of the DKI DPRD IKN at the DKI DPRD Building, Monday, August 15. (Diah-VOI)

JAKARTA - The Jakarta Special Committee (Pansus) after the relocation of the State Capital (IKN) of the DKI Jakarta DPRD started their first meeting to discuss the condition of DKI Jakarta after it was no longer the capital city.

One of the highlights is the decline in the nominal budget for regional revenues and expenditures (APBD) in Jakarta when the official center of government is run at IKN Nusantara, East Kalimantan.

In a sense, Jakarta's APBD after 2024 will be reduced from previous years. This year, DKI Jakarta's APBD is set at Rp82.47 trillion.

"We will experience a big correction in terms of the APBD. Our current APBD is Rp. 80 trillion, after not becoming the capital city, the correction will be big," said Jamaludin, member of the Special Committee for IKN from the Gokar faction, at the DKI Jakarta DPRD building, Monday, August 15.

Then, Jamaludin also questioned the readiness of the DKI Jakarta Provincial Government in managing local revenue (PAD) which is the source of the APBD.

Even though Jakarta will still have the status as a special area, the reduction in regional income is inevitable because a number of Jakarta residents, including the central government ASN, have moved from Jakarta to IKN Nusantara.

As a result, individual and business tax payments have decreased. Not to mention, balancing funds and profit-sharing funds distributed by the central government will also experience a decline.

"When we no longer have (the status of the capital city), then automatically big taxes such as PKB (motor vehicle tax) and entertainment taxes will definitely fall when rich people must move. Vehicle ownership will also change," said Jamaludin.

"I mean, what internally is Jakarta going to do. I ask the DKI Regional Government to prepare everything. Don't get caught up in confusion and confusion when moving the capital city, then the APBD drops. That's what I ask to be prepared," he continued.

For information, last June, the DKI Jakarta DPRD formed a Special Committee for Jakarta Post-Movement of the State Capital (IKN). The formation of this special committee has been approved in a plenary meeting with the appropriate arrangement in Government Regulation No. 12 of 2018 concerning Guidelines for the Preparation of Orders for Provincial, Regency and City DPRD.

The Special Committee is filled by 25 people consisting of two leaders and 23 members. The Special Committee for IKN will issue recommendations regarding the direction of development in Jakarta after the capital city officially moves to East Kalimantan.