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Two high-ranking officials of the Nusantara Capital City (IKN) Authority, Bambang Susantono and Dhony Rahajoe, have suddenly resigned despite the fact that the ceremony to commemorate Independence Day on August 17 is only a few weeks away. The two men said they had resigned from their prestigious positions as an act of responsibility to the public. They were unable to fulfill the request from President Joko Widodo to accelerate the construction of the IKN.
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Jokowi wants to hold the Independence Day ceremony at the IKN in East Kalimantan this year. He wants to show that this grand project aimed at leaving behind a legacy is a success. If it fails, Jokowi will have no more opportunities to preside over the ceremony in the new capital as head of state. His term of office ends on October 20.
After Bambang Susantono and Dhony Rahajoe resigned, officials close to Jokowi changed the scenario of the flag-raising ceremony. Now the plan is to hold a hybrid ceremony, namely a physical ceremony in the IKN and an online ceremony for those in Jakarta. This model reminds us of events during the Covid-19 pandemic.
Is Jokowi satisfied? Certainly not. As an ambitious man, Jokowi is disappointed with the progress of the IKN development. He forgot the advice of a wise person: if your aims are not achieved, it means that you did not try hard enough or that your target was set too high. In the case of IKN, it seems to be the latter. The law concerning it was drawn up in a rush and kept secret. There is insufficient funding, a myriad of problems, and investors hesitate to invest.
For investors, the IKN does not promise profitability. There will be significant circulation of money only if a city has at least 5 million inhabitants. The IKN will have at most 4.5 million. And this is if all civil servants are forced to move there. Without a large enough population, businesses will lose money. It is this simple calculation that makes investors hesitant, contrary to Jokowi’s initial claim that there was a ‘long queue’ of investors waiting to invest in IKN.
The physical construction is also proceeding slowly. Although the IKN Authority has significant powers, matters concerning funding for the construction of infrastructure at the IKN are in the hands of the Public Works and Housing Minister. The IKN only deals with land conflicts. In other words, it is only a paymaster. It is no wonder that bureaucratic gridlock causes land conflicts to persist, especially with indigenous communities.
And besides this problem, the IKN has come under significant criticism because of its location. The Penajam region has many peat bogs and coal deposits. As a result, it is difficult to obtain water, while stone and other building material must be brought in from other islands. The presence of coal and peat bogs is a deadly combination that could lead to the IKN becoming very hot. Sun heat from above meets heat from the earth’s surface. On top of this is the damage to the mangrove ecosystem on the Balikpapan coastline.
All of these are the consequences of IKN development that have not yet fully begun. Therefore, if the project is forced through, there will be increasing environmental damage despite the fact that the IKN concept is of a green city forest.
The resignations of Bambang Susantono and Dhony Rahajoe indicate the difficulty of realizing IKN. President Jokowi still has an opportunity to stop this development that seems more likely to become a chaotic legacy. After all, President-elect Prabowo Subianto is not enthusiastic about this project. He is more eager to discuss the free lunch program.
In this week’s edition we discuss the long-term problems of building the IKN. Enjoy the magazine.
Bagja Hidayat
Deputy Chief Editor
A Myriad Problems in the New Capital City
Two high-ranking IKN Authority officials did not resign, but were asked to step down. IKN development planning has moved away from the initial concept put forward in a national government planning agency study.
Financing the New Capital City
President Jokowi disbursed Rp71.8 trillion of state budget funds for the Nusantara Capital City (IKN) project. Investors are waiting for certainty about who will reside in the new capital.
Law
PGN’s Gas Sale Corruption
The KPK named a former director of PGN and a businessman as suspects in the gas sales corruption case. The method involved debts settlement.
Economy
Big Scenario Behind New Tapera Program
The government will make the Tapera program mandatory for all workers. A way to shift the budgetary burden to the people.
Interview
BPJS Kesehatan’s CEO: Inpatient Class Will Not Be Scrapped
BPJS Kesehatan CEO Ali Ghufron Mukti explains the standard inpatient class system stipulated in the Presidential Regulation on Health Insurance.
Read on Tempo Magazine:
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