BY ASKING Allah SWT’s blessing, by asking for permission and support from the honorable members of the Council, the elders and national figures, especially from all the Indonesian people, I ask for permission to move the capital city of our country to the island of Kalimantan, said President Joko Widodo.
If only that was the sentence that was uttered by President Joko Widodo in the midst of the momentum to give a State Speech on the 74th Anniversary of the Republic of Indonesia’s Independence Day at the Joint Session of the Regional Representative Council (DPD) and House of Representatives (DPR RI) at the Parliament Complex right in 2019.
This statement is a new chapter for Indonesia to move the National Capital City (IKN) from being originally set in DKI Jakarta since August 17, 1945 to East Kalimantan, precisely North Penajam Paser in the near future.
The consideration for the need to move IKN is that Jakarta’s burden is now too heavy as a government center, business center, financial center, trade center and service center so that this city contributes around 18 percent of Indonesia’s GDP.
Initially, the request for permission from the President, which had reaped the pros and cons, turned out to be not a figment, because in fact the government and the wider community worked hand in hand to realize the transfer of IKN.
The effort to realize this IKN began with the discussion of the Draft Law on the New Capital City (RUU IKN) following up on the Letter of the President of the Republic of Indonesia Number: R-44/Pres/09/2021 on September 29, 2021.
The IKN Draft Bill is comprehensively drafted and does not only regulate the specifics, authorities and positions of organizational units that carry out activities for the preparation, development, and transfer of IKN. On the other hand, the IKN Bill also regulates various fields, including spatial planning, land and transfer of land rights, the environment, disaster management as well as defense and security.
In addition, funding schemes and management of revenue and expenditure budgets are also regulated, starting from the preparation, development, and transfer processes. The Special Committee (Pansus) for the IKN Draft Bill was formed in December 2021 consisting of the DPR and the government to explore the points of the articles in the IKN Draft Bill.
They also massively consult with several experts including academics in Kalimantan such as Hasanuddin University and Mulawarman University who are expected to provide input on the IKN Draft Bill.
Discussions and consultations related to the IKN Draft Bill have been carried out since December 2021 before finally being approved by the Indonesian House of Representatives to be passed into law through a Plenary Meeting on January 19, 2021.
Important points of the IKN Draft Bill
The IKN Draft Bill which has been approved by the Indonesian House of Representatives to be passed into law by President Joko Widodo is the first step in starting the construction and relocation of the capital city.
Based on data from the Ministry of National Development Planning (Bappenas), the law has several important points, including the IKN development process is planned to be implemented until 2045 by taking into account the synergy of funding schemes and fiscal sustainability.
The construction and relocation are carried out in five stages, namely the first stage in 2022 to 2024 by prioritizing the availability of basic infrastructure, while stages two to five start from 2025 to 2045.
The name of the new National Capital City (IKN) has been decided to become Nusantara which is described as a conceptualization of the geographical area of Indonesia with the constituent islands united by the ocean.
Then a new IKN will be built and developed with the aim of becoming a sustainable city in the world by prioritizing ecological balance so that it can become a symbol of national identity.
For the IKN government, it was agreed in the form of a Special Regional Government (Pemdasus), which is a regional government that has specificity and is at the provincial level whose territory is the seat of IKN.
The IKN Nusantara Special Regional Government, which is referred to as the IKN Authority, is at the ministry level and is tasked with preparing, developing, and transferring IKN as well as budget users or goods users.
Land acquisition by the IKN Nusantara Authority and/or ministries/agencies in IKN Nusantara is carried out through the forest area release mechanism and the land acquisition mechanism in accordance with the provisions of the legislation.
Furthermore, IKN spatial planning will be carried out through the eight principles of the IKN Master Plan, namely designing according to natural conditions, prioritizing Bhinneka Tunggal Ika and being connected, active, and easily accessible.
Then also a low carbon emission environment, circular and resilient, safe and affordable, comfortable and efficient through technology and able to create economic opportunities for all.
The government also pays attention to the scope of life, disaster management and defense and security.
Sources of funding
The government estimates that the total budget requirement for IKN will reach IDR466 trillion, which will be met through the State Budget of IDR89.4 trillion, IDR253.4 trillion from government and business entity cooperation (KPBU) and IDR123.2 trillion from the private sector.
Minister of Finance Sri Mulyani Indrawati after the plenary session of the approval of the IKN Draft Bill into the IKN Law had said that the initial steps for the development and relocation of IKN were categorized as a process of economic recovery.
Therefore, the budget will be included in the National Economic Recovery (PEN) program considering that this year’s PEN program ceiling of IDR450 trillion has not yet been specified for its use as a whole.
Then for 2023 and 2024 it will still be seen and adjusted to the development of COVID-19 as well as other momentum, namely general elections that must be prepared so that the budget needs will be quite large.
Moreover, in terms of fiscal policy, Law Number 2 of 2020 emphasizes that the 2023 deficit must return to the 3 percent level so that the government must really keep the deficit under control.
Meanwhile, the 2025-2045 IKN development budget will still see the overall needs for the medium to long term estimation. However, the government will calculate and allocate budget needs carefully and carefully so that the IKN development goals are achieved while maintaining financial stability and sustainability.
The government also ensures that the funding for IKN development does not interfere with the handling of COVID-19 and priority economic recovery programs such as social assistance.
The Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa, assessed that the purpose of using the APBN with a long tenor is to prevent IKN development from stopping halfway because it takes a very long time.
However, Sri Mulyani emphasized that IKN development does not have to use PEN funds if it is considered a violation of Law Number 2 of 2020 which is the basis for distributing PEN funds.
For the development of IKN, the government can also use the budget allocated to related ministries and institutions, for example the budget for the Ministry of PUPR which is IDR110 trillion in 2022.
Nusantara Symbol of Indonesian Identity
Nusantara was chosen as the name of the new IKN to describe the geographical diversity accompanied by the cultural diversity in Indonesia. This Nusantara (Archipelago) is a unified concept that accommodates the richness of Indonesia’s diversity because it is considered capable of representing this reality.
The reality of Indonesia’s pluralistic wealth has become social capital to advance the welfare of the people in a just manner, towards a future Indonesia that is advanced, resilient, and sustainable.
The Nusantara as the new capital city of Indonesia has become a symbol of national identity that represents the diversity of the Indonesian nation based on Pancasila and the 1945 Constitution of the Republic of Indonesia.
The identity of Indonesia will be reflected through the Vision of the Nusantara as the new capital city, namely the World City for All, which not only describes the people living in IKN in the future but also the environmental conditions that will be restored and maintained.
The vision of the National Capital City is described in three main objectives, namely as a symbol of national identity through a city that embodies identity, social character, unity and greatness of a nation. Then also as a sustainable city in the world, namely by realizing a city that manages resources efficiently and provides services effectively.
This service will be carried out by utilizing efficient water and energy resources, integrated transportation modes, a livable and healthy environment as well as synergies between the natural environment and the built environment.
Finally, the archipelago is the driving force for the Indonesian economy in the future, given its strategic location on international trade routes and is considered to be able to equalize the welfare and economy of the people of the country.
New Economic Gravity
The transfer of IKN to Kalimantan was based on several considerations of regional advantages and in line with the vision of the birth of a new economic center of gravity in the middle of the archipelago.
In terms of location, the location is very strategic because it is in the middle of the territory of Indonesia which is passed by the Indonesian Archipelagic Sea Route (ALKI) II in the Makassar Strait which also acts as the main national and regional sea route.
The location of IKN in East Kalimantan also has relatively complete infrastructure including good airports, ports and toll roads as well as the availability of other infrastructure such as adequate energy and drinking water networks.
In addition, the location of IKN is also close to two supporting cities that have developed, namely the City of Balikpapan and Samarinda City, as well as land controlled by the government is very adequate for development and the risk of natural disasters is minimal.
Various considerations for moving IKN to East Kalimantan are considered to be able to create more inclusive economic growth and eliminate economic gaps or gaps in Indonesia.
So far, economic activity has been very focused on the Java region, so that if the IKN is moved to East Kalimantan, the economic gap can be resolved, especially for the eastern, central and western regions of Indonesia.
This transfer will also accelerate the development of Eastern Indonesia so that IKN will become the engine of the economy for Kalimantan and trigger the strengthening of domestic value chains throughout Eastern Indonesia.
In addition, IKN development also places Indonesia in a more strategic position in world trade routes, investment flows, and technological innovation. The application of technological innovation in IKN will make Indonesia a model in sustainable city development that maintains and even improves the surrounding environment.
In the end, the transfer of IKN to East Kalimantan is also one of the government’s strategies to realize Indonesia’s Vision 2045, which is to enter the top five strongest economies in the world with high income per capita incomes.
This target is built on the four main pillars of Indonesia’s Vision 2045, namely human development and mastery of science and technology (science and technology), sustainable economic development, equitable development and strengthening national resilience and governance. [antaranews/photo special]