OJK prepares Rp47 billion to relocate to IKN
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - OJK siapkan Rp47 miliar untuk pindah ke IKN
8 March 2023
Balikpapan - Based on law, the Financial Services Authority (OJK) is one of the institutions that will have to relocate to Nusantara Capital City (IKN). OJK has received a budget of Rp47 billion this year and asked for a land of 1.5 hectares (ha) for their office on Kalimantan Island.
“We have requested the land to IKN Authority and Public Works and Housing (PUPR) Ministry,” OJK Board of Commissioners Deputy Chairperson Mirza Adityaswara said at a focus group discussion (FGD) with the media in Balikpapan on Friday (3/3/2023).
Mirza explained that the construction of OJK’s office will be carried out in stages. For this year, OJK has requested a budget of Rp47 billion for the construction in IKN. “The House of Representatives (DPR) has approved the budget to construct OJK’s building worth Rp47 billion for this year. We are also in a submission process for the 2024 budget,” Mirza said.
Ronny Pantau, an official from IKN Authority, admitted that OJK’s office location has yet to be determined when he received Mirza and the OJK team. Not only OJK, but there are also several ministries and other institutions that have yet to be allocated a location in IKN. Construction is carried out in stages, and there are currently 29 projects that must be completed by 2024 in IKN.
Meanwhile, Bank Indonesia (BI) Governor Perry Warjiyo previously said that BI was also preparing to relocate to the new capital in 2023. “The Deputy Governor has started to go back and forth to IKN to prepare, so BI’s relocation to IKN is included in our policy direction in 2023,” Perry said at the work meeting with DPR Commission XI on Monday (21/11/2022).
Bank Indonesia is one of the institutions that will relocate first with several government institutions and offices to IKN. This is the instruction from President Joko Widodo.
Perry mentioned that the central bank is in the final stage of the design concept adjustment to relocate to the new capital city. For the relocation procedure, Perry continued that BI would coordinate with the government in line with the relocation road map. “Coordination will be carried out regarding the legal, organisation, work process, human resources, and facilities and infrastructure provision aspects,” he stated.
The first stage of IKN development will be carried out from 2022 to 2024, and it focuses on the construction in Development Area (WP) 1 or the Central Government Core Area (KIPP) that reaches 6,671 ha. From that size, 49% or 3,271 ha will be kept as a forest area.
IKN infrastructure construction that is carried out by the PUPR Ministry in the first stage from 2022 to 2024 includes 63 construction projects that cost US$4.5 billion, which are all funded by the government. Until the second week of February 2023, several projects worth US$1.58 billion have been contracted.
