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Future of new capital development after Jokowi's administration is 'pitch-black', observer claims

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Tempo - July 12, 2024

Ilona Estherina, Eka Yudha, Jakarta – Political observer Adi Prayitno doubts the future of Indonesia's new capital city project, or Nusantara Capital City (IKN), after the government transfer from President Joko Widodo or Jokowi to Prabowo Subianto. The difference in the priority programs between both leaders will potentially hamper the continuity of IKN construction.

Adi explained that IKN seemed to be used as a narrative by Prabowo's camp, but in reality, his priority "free meal" program also requires a huge budget.

"The future of IKN seems to be pitch-black after Jokowi's administration," he said on Thursday evening, July 11, 2024.

The Executive Director of Parameter Politik Indonesia also highlighted the hesitation of the state civil apparatus to move to IKN, the slow-going investment, and the unfinished infrastructure. "The public also knows that IKN is not a one-off project, it takes a 10-year process. It's not magic," he said.

The public is once again highlighting the sustainability of IKN development amidst the government's eagerness to hold the Indonesian Independence Day ceremony there on August 17 this year. Initially, Jokowi also said that he would have an office at IKN this month, but the infrastructure development is unfinished to this day.

President Jokowi also refused to force the issuance of a Presidential Decree that regulates the capital city relocation.

Chair of PDIP DPP Djarot Saiful Hidayat also doubts that the capital city will be transferred from Jakarta to IKN in the near future. "This is one of the consequences of hasty policies," said Djarot on Tuesday, July 9, 2024.

IKN's burden on the state budget

Executive Director of the Institute for Development of Economics and Finance (INDEF), Esther Sri Astuti, said the construction of Nusantara Capital City, or IKN burdens the State Budget. Esther said other programs such as President-elect Prabowo Subianto's free meal program also burden state funds, but no more than the new capital project.

"If asked to choose between the free lunch program or IKN, I'd choose free lunch," she said on Wednesday, July 10, 2024.

Esther explained that the Prabowo-backed program at least boosts public consumption which could improve GDP or economic growth.

Previously, the Minister of Finance Sri Mulyani Indrawati explained that the government has allotted over Rp72.5 trillion for IKN development. She hoped the new capital city would be ready to host the commemorative ceremony for Indonesia's Independence Day on August 17.

Source: https://en.tempo.co/read/1890527/future-of-new-capital-development-after-jokowis-administration-is-pitch-black-observer-claim

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