Professor Anthony: The IKN Project Is A Burden Of Indonesia's Economy

Eddy Wijaya and Prof Anthony, Managing Director of Political Economy and Policy Studies (PEPS). (Doc Eddy Wijaya)

JAKARTA - Managing Director of Political Economy and Policy Studies (PEPS), Professor Anthony Budiawan stated that the development of the Capital Nusantara (IKN) is one of the causes of the weakening of the Indonesian economy. He considered that the project was difficult to run well because it drained a lot of state budgets.

"There are so many policies that make our economy bad, weaken. For example, when we see the relocation of the capital city of IKN, it is clear that it is impossible, the law violates the constitution," said Prof. Anthony while talking to Eddy Wijaya on the EdShareOn podcast which aired on Wednesday, July 16, 2025.

According to Prof. Anthony, the IKN development policy which began during the administration of President Joko Widodo was exacerbated again because it was suspected that it was full of the practice of corruption in Collusion and Nepotism (KKN). "At that time, Jokowi's era. Right, in the Jokowi era, there was a policy that was a lot of corrupt policy, right. A lot for the KKN itself, the groups themselves," he said.

Prof. Anthony's statement is in line with the findings of Indonesia Corruption Watch (ICW) in mid-2024. ICW found concerns by foreign investors about corruption-free guarantees when investing in mega projects located in North Penajam Paser Regency and parts of Kutai Kartanegara Regency. Another ICW findings mention 24 projects in IKN that have the potential for fraud with a total budget of IDR 8.57 trillion, one of which is the IKN toll road project.

Prof. Anthony said that IKN development is also irrational because it is in the middle of a forest that has the potential to be constrained in regulating community housing. On the edge of the city of Jakarta, just like in Kelapa Gading, it requires 20 new years to live in. That's on the edge of Jakarta. BSD how many years of development? How do you want 5 years to be like that (IKN is developing)? This doesn't make sense," he said.

However, Prof. Anthony said the IKN project could run if the government consistently carried out sustainable development. It is a problem if the commitment to continue the project cannot be maintained. That in 50 years it can develop, maybe if this is done. Who can be strong to build 50 years? So this is just a dream," said the Business Economy Master from Erasmus University Rotterdam Netherlands.

Prof. Anthony then suggested that in the future the Government should focus on policies that are relevant, especially so that the economy gets better. So if there is one policy that we consider contradictory, we must criticize. Accepted, not accepted, that's different. We also don't force that input is accepted. The important thing is that we share our thoughts to improve the economy," he said.

The Managing Director of PEPS, Professor Anthony Budiawan, criticized the organization's plans between the BRICS governments which launched a de-dollarization or replacement of the United States (US) dollar in international trade. According to him, the move is as tough as the Euro currency has ever experienced.

This dedolarisation is an illusion. In the 90s, the strongest economy was the European Union. They then unite to use the Euros in their trading system. However, the Euros cannot replace the US Dollar," Prof. Anthony told Eddy Wijaya.

The Chancellor of Kwik Kian Gie School of Business for the 2011-2015 period explained that one of the requirements to create a currency is to own a Central Bank. It's not easy. How (Bank) must exist in Russia, China, Brazil, Indonesia (as a member of BRICS). And where is the Central Bank to manage a currency?' he said.

Prof. Anthony explained that Russia, which has not used USD during trade transactions with a number of countries, cannot be used as a reference. Because Russia's move was driven by an embargo or sanction given by the US, making it difficult to use USD in transactions. "So, the SWIFT control doesn't exist, the SWIFT account is on the block so it can't transfer (money) to Russia," he said. Well, it's not de-dollarization, but in my opinion, because I was forced to use Dollar, "he added.

The figure of Eddy Wijaya is a podcaster who was born on August 17, 1972. Through the @EdShareOn YouTube account, Eddy interviewed many national figures ranging from state officials, legal experts, political experts, national politicians, to Indonesian celebrities. The man with the characteristics of the right cheek dimple is also a nationalist who is a struggling activist for discriminated and social observers by helping the community through the Wijaya Peduli Bangsa foundation.

He is also active in sports by serving as Daily Chair of the Indonesian Horseed Sports Association (Pordasi) Pacu and has also served as Deputy Chairperson of the All-Indonesian Badminton Association (PBSI) East Jakarta. His ideas were formed because of his hard work to be independent from the age of 13 years until his success as he is now. For Eddy, the world of work is not as smooth as imagined, failure and rejection are commonplace. This is what makes him hold on to the tagline Success is only a matter of time. (ADV)