Heaptalk, Jakarta — In a press release on Thursday (06/06), the Audit Board of Indonesia (BPK) emphasized that the megaproject of Nusantara Capital (IKN) initiated by President Joko Widodo (Jokowi) does not resemble the legend of Roro Jonggrang, where the capital can be moved in only one night.
“It requires a process; therefore, the relocation of the capital is a strategic priority project outlined in the National Medium-Term Development Plan (RPJMN) 2020-2024 as part of the regional development agenda (PN2). Moreover, the IKN megaproject is designated as a major project that will absorb the budget in the long term as stipulated in the IKN Law,” BPK stated in its press release.
According to the Summary of Semester II Examination Results (IHPS) for 2023 released by BPK, Nusantara Capital’s development is facing significant challenges. The master plan, based on field realization, reveals that the project is grappling with serious issues such as inadequate infrastructure due to unresolved land issues, underscoring the urgency of these problems.
BPK reported that other parties still own 2,085.62 hectares out of 36,150 hectares of land. Additionally, the certification process for five land acquisition areas is not yet complete. Meanwhile, forest land has not been managed promptly due to the slow issuance of land management rights (HPL). The distribution of materials and construction equipment is also stalled. Besides the uncontrolled prices of materials like crushed stone, BPK highlighted the rising cost of renting barges. On top of that, loading and unloading ports which are vital are not fully prepared.
Furthermore, BPK observed that the Ministry of Public Works and Housing (PUPR) lacks a scheme or plan for asset handover, operational budget allocation, and mechanisms for the maintenance and management of assets resulting from Phase I Nusantara Capital development.
The recent resignations of Nusantara Capital Authority (NCA) Head Bambang Susantono and his deputy Dhony Rahajoe have added to the project’s challenges. Their departure, approved by President Joko Widodo (Jokowi), has not been accompanied by explicit reasons. However, it was previously rumored that the issue of unpaid salaries and allowances for Nusantara Capital officials and staff was a factor, further highlighting the project’s current issues.
The Ministry of Finance (Kemenkeu) acknowledged that the payment of salaries and allowances for NCA officials had been delayed. Special Staff to the Ministry of Finance Yustinus Prastowo admitted that the salaries of the Head and Deputy Head of NCA had been delayed. “It’s clear now, everything has been resolved,” Prastowo said in a recent press release.
Meanwhile, for the salaries of OIKN deputies and staff, the Ministry of Finance assured that payments would be made soon following the completion of Presidential Regulation No. 44/2023 concerning Financial Rights and Other Facilities for the Secretary, Deputies, Heads of Legal and Compliance Work Units, and Directors/Heads of OIKN Bureaus. “In short, the issue of delayed salary and allowance payments, which was raised during the NCA hearing with Commission II of the House of Representatives in early April, is considered to have been resolved,” BPK concluded.
