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LMAN spends Rp1.43tn for land acquisition at IKN

Tempo - January 24, 2024

Antara, Jakarta – Throughout 2023, the State Asset Management Institute (LMAN) has spent Rp1.426 trillion for the development of the Indonesian Capital City (IKN) in East Kalimantan. The amount consists of Rp1.01 trillion to acquire land for road access, and Rp415.88 billion for developing the Central Government Core Area (KIPP).

In a press conference in Jakarta, January 23, LMAN's director of land procurement and funding, Rustanto, said that Rustanto explained that LMAN's funding for IKN development was in the form of compensation (UGR) paid to landowners, both local residents and companies.

In total, LMAN has allocated Rp3.4 trillion to acquire lands in the new capital city. The government hopes that the remaining budget of Rp1.97 trillion can be absorbed immediately in order to finish all land acquisition processes this year.

LMAN also spent the land acquisition funds for constructing toll roads and dams around the IKN area with an actualized budget of Rp910.37 billion. A total of Rp357.93 billion was spent to free up land for the construction of the Sepaku Semoi Dam, and Rp552.4 billion for the construction of the Balikpapan-Samarinda Toll Road.

Land acquisition for IKN development is one of LMAN's tasks for land acquisition for National Strategic Projects (PSN). Throughout 2023, LMAN has disbursed a budget of Rp18.2 trillion for PSN land acquisition, an increase from 2022's spending of Rp16.4 trillion.

Most of the funds were used to procure PSN land in the form of toll road projects in various regions, totaling Rp14.4 trillion. In 2023, the majority of funding for land acquisition were made in direct payments.

Source: https://en.tempo.co/read/1825226/lman-spends-rp1-43tn-for-land-acquisition-at-ik