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Investor Daily - Jokowi pastikan pembangunan IKN terus berlanjut
5 June 2024
By Heru Febrianto
Jakarta, ID – President of Indonesia Joko Widodo (Jokowi) confirmed that construction of infrastructure projects in Nusantara Capital City (IKN) will continue even though two high-ranking IKN Authority officials, namely Bambang Susantono and Dhony Rahajoe, resigned from their positions.
As quoted from Jokowi’s official Instagram account, the President stated that on Monday (3/6), a Presidential Decree had been issued regarding the honourable dismissal of Bambang Susantono as Nusantara Capital City Authority (OIKN) Head and Dhony Rahajoe as OIKN Deputy Head. The issuance of the Presidential Decree followed the resignation he had received.
“The development of IKN will continue according to the shared vision that has been established,” said President Jokowi.
On this occasion, Jokowi also explained that the Public Works and Public Housing (PUPR) Minister Basuki Hadimuljono and the Agrarian Affairs and Spatial Planning Deputy Minister/National Land Agency Deputy Head (ATR/BPN) Raja Juli Antoni would assume the obligation as the OIKN Acting Head and Acting Deputy Head.
“Until the definitive OIKN Head and Deputy Head are appointed in accordance with the law, to ensure IKN development acceleration programmes [continue],” he explained.
President Jokowi’s resolve in continuing IKN development was demonstrated by holding a two-day groundbreaking ceremony for the IKN Phase VI Project from 4-5 June 2024.
On the first day, the groundbreaking ceremony was held for four projects, including the Construction of Gunadarma University International Doctoral Programme Campus Building, Construction of Astra Biz Centre, Construction of Nusantara Botanical Garden, and Construction of Al Azhar Summarecon Nusantara Islamic School.
During the groundbreaking of Astra Biz Centre, Jokowi explained that investing in Nusantara Capital City was like buying the future. The reason, he said, is that the benefits of various infrastructure such as roads and airports will only be tangible in the next few years.
“Do not imagine the present [condition] because the toll road from Balikpapan to IKN is not yet finished, so you have to make a detour first to get to IKN,” said President Jokowi as quoted by Antara on Tuesday (04/06/2024).
Along with development progress, Jokowi explained that transportation access to IKN will become easier with the existence of toll roads and commercial airports.
Therefore, he encouraged investors to invest in IKN development soon before land prices become expensive.
“Because now we know the price is between Rp400 thousand-Rp800 thousand. In Balikpapan alone, one meter [of land] is already Rp15 million, in Jakarta Rp200 million. But those prices I am telling you today could change tomorrow because if the demand is high, the price automatically goes up,” he said.
President Jokowi also expressed his appreciation to PT Astra Internasional Tbk for contributing to IKN advancement by building Astra Biz Centre, which is an integrated service complex on 3.4 hectares of land to serve the business activities of 11 companies under Astra Group.
In addition, he also appreciated the construction of Nusantara Botanical Garden by entrepreneurs who were members of Nusantara Consortium.
“I would like to thank you because this is not a business matter, this is a social matter. Because from their CSR [corporate social responsibility], these people spent a lot of money, I do not know how many hundreds of billions, I want the product to be finished,” he explained.
This botanical garden is expected to support IKN as a green, smart, and fun city.
“This must be seen as a city of the future,” said President Jokowi.
Inaugurating supporting facilities
During his work visit to East Kalimantan, President Jokowi also inaugurated several supporting infrastructure in IKN. First, the inauguration of the Sepaku Semoi Dam in North Penajam Paser Regency, East Kalimantan. The project, which began construction in 2020, was successfully completed this year at a cost of Rp836 billion.
According to Jokowi, the Sepaku Semoi Dam has a large capacity that reaches 16 million cubic metres with a water area of 322 hectares. It is hoped to address the need for clean water not only for Nusantara Capital City, but also parts of Balikpapan City.
“This will be a source of raw water for drinking water in Nusantara Capital City and also partly for Balikpapan City,” said the President.
Moreover, the Sepaku Semoi Dam is also expected to reduce the risk of floods around the area and provide economic benefits for local communities through the development of the agricultural and fisheries sectors.
The next project that was inaugurated was the Mentawir plant nursery facility in North Penajam Paser, East Kalimantan, as the centre for the green programme for Nusantara Capital City and its surroundings.
The President said that the nursery facility, which is equipped with a germplasm centre in the form of a bio bank and seed bank, is a main component that the government has prepared since the start of the IKN development.
The seedlings grown in this facility, said the President, are useful for seeding in forest rehabilitation by replanting trees in several former mining locations.
Environment and Forestry Minister Siti Nurbaya said the Mentawir large-scale nursery centre in North Penajam Paser had a construction cost of Rp339 billion.
Siti explained that the Mentawir nursery centre would produce 15 million seeds per year to fulfil the supply of high-quality seeds for forest and land rehabilitation programmes in both Nusantara Capital City and Kalimantan.
“The total [cost] for this construction is around Rp339 billion or equivalent to US$21 million in total, but the construction of the nursery only is approximately US$14 million,” said Minister Siti.
