Some 80 percent of the development budget for Indonesia’s new national capital city (IKN) will be derived from the public-private partnership (PPP) scheme and direct investment, President Joko Widodo (Jokowi) stated.


“We estimate that budget for the development of the governmental core area, which contains governmental palaces and ministerial buildings, will amount to 20 percent of the total required budget. It will be sourced from the state budget (APBN)," Jokowi noted here on Tuesday.

The head of state remarked that the total area of the new state capital will reach 256 thousand hectares. However, infrastructure development will only be conducted in 50 thousand hectares of the land.

Meanwhile, the remaining 200 thousand hectares will be preserved, as it is a green forest.

“If any area of the forest is damaged, we will conduct reforestation,” the president emphasized.

Jokowi spoke of the government also building a plant nursery, with a production capacity of 20 million seedlings per year, in the new capital city.

Drawing attention to Environment and Forestry Minister Siti Nurbaya Bakar's report, the president noted that currently, the work to construct the nursery was almost complete.

"It shows that we prioritize to make the new IKN an environmentally friendly city," he emphasized.

The landscape of the new capital city, called Nusantara, in East Kalimantan Province is hilly.

Hence, Jokowi has stressed that the new IKN's development design will adjust to the natural contours of the land and maintain the current forest ecosystem.

The president further accentuated that the attempt to move the national capital aims to increase equitable access to infrastructure, economic benefits, and social justice in Indonesia.

On January 18, 2022, the Indonesian House of Representatives had passed the IKN Bill into law. It was signed by President Jokowi on February 15, 2022, to become Law Number 3 of 2022 on IKN.

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Reporter: Indra Pribadi, Uyu Liman
Editor: Sri Haryati

Pewarta: Indra Pribadi, Uyu Liman

Editor : Mahdani


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