IKN Criticism and Analysis Of its Financing Readiness
President Joko Widodo's bold vision to shift Indonesia's capital to East Kalimantan promises relief from overcrowding and environmental threats in Jakarta. However, as the colossal project nears, financial readiness becomes a glaring concern. 🌐💰
Critics argue that the whopping 466 trillion budget won't spare the national treasury, with prominent figures like Anies Baswedan and the Institute for Development and Finance (INDEF) casting doubts. 🤔💼
Join us on a deep dive into the intricacies of the IKN financing scheme — dissecting APBN's shaky ground, BUMN's rollercoaster profits, and the rollercoaster ride of PPP's projections. 🎢📉
Can domestic and foreign investments be the saving grace for this ambitious endeavor, or are we witnessing a financial tightrope act with uncertain consequences? 🤹♂️💡
As Indonesia stands at the brink of this transformative move, share your thoughts and concerns. The financial fate of the new capital hangs in the balance. 🇮🇩💬 #IKNFinances #IndonesiaCapitalMove #FinancialCritique
Let's dive more...
President Joko Widodo has had an ambitious development program during his period. The ambitious program is moving the country's capital. The country's capital will be moved to Panajam Paser, East Kalimantan. There are several reasons for moving the country's capital, including population density on the island of Java. Apart from population density, Jakarta's position as the nation's capital also causes GDP concentration on the island of Java. Contribution to the economy on the island of Java alone covers 58.49% of GDP (Indonesiabaik.id).
Apart from issues of equal population distribution and the economy, the relocation of Indoneasia’s capital is also motivated by environmental aspects. One of the things that is a strong driver for moving the country's capital is the threat of natural disasters. Jakarta itself has a 50% threat of flood disasters in under 10 years. The Jakarta area is also prone to natural disasters such as tsunamis, earthquakes, and volcanic eruptions. Land subsidence in the Jakarta area is also quite high, reaching 35-50 cm in the 2007-2017 period.
The various problems mentioned above provide a strong basis for immediately moving residents outside Java. Moving the capital is considered to have many positive values in Indonesia's development. However, moving to the capital city is not a simple matter. This is especially true if we consider the funding aspect. The budget needed for the development of the national capital (IKN) reaches 466 trillion. However, it is stated that these funds will not be fully charged to the APBN (www.in.go.id).
Even though it is considered that it will not burden the APBN the construction of the new national capital in East Kalimantan is not free from criticism. One of the criticisms was made by Anies Baswedan, Candidate for President of the Republic of Indonesia number 1 in the first presidential debate. Anies views that moving the capital requires large funds, but according to him, it will not solve the fundamental problems in Jakarta. This is because the focus of moving the capital city is only on moving ASN, while the economy will still be centered in Jakarta.