Monday, 23 September 2019

Bappenas: Govt May Need Rp446tn for Capital City Relocation

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Markus Wisnu Murti

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  • National Development Planning Agency (BPPN) head Bambang Brodjonegoro. TEMPO

    National Development Planning Agency (BPPN) head Bambang Brodjonegoro. TEMPO

    TEMPO.CO, Jakarta - The National Development Planning Agency (Bappenas) head Bambang Brodjonegoro estimated the government would need Rp466 trillion to relocate the capital city if the planned area is 40,000 hectares in size.

    “We try to make predictions for the relocation financing. For the first scenario, it may cost Rp466 trillion or US$33 billion,” said Bambang after a limited meeting in the Presidential Office, Jakarta, Monday, April 29.

    Bambang explained the first scenario would not include rightsizing the state apparatus (ASN). Thus, all ASN in the central government would be moved to the new capital city. Based on data in 2017, the new capital would need some 1.5 million people, consisting of members of the executive, legislative, judicative, and their families.

    “Of course we have long estimated that each worker has four family members. This is just an assumption,” he added. 

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    With the total of 1.5 million people, Bambang went on to say, the new city required a 40,000-hectare area with 5 percent of it for the administrative, 15 percent for the economic sector, 20 percent for infrastructure circulation, 40 percent for residences, and 20 percent for green open spaces.

    The second scenario, rightsizing the ASN would be applied if the capital is moved to a 30,000-hectare area. Thus, the estimated budget would be at Rp323 trillion, lower than the first option’s.

    Bambang further mentioned that the government could apply four financial schemes: State Budget; cooperation with state-owned enterprises (SOEs); government-to-business partnership cooperation (KPBU), and direct cooperation with private parties. 

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    According to Bambang, Finance Minister Sri Mulyani considered the estimated budget was still reasonable and suggested the provision of land concession owned by the government in the new capital to private parties in a bid to generate non-tax revenue (PNBP).

    “And the use of the central government’s assets in Jakarta because not all them will be still utilized if it’s available in the new capital city, and of course, it will geneate more PNBP,” Bambang concluded.

    FRISKI RIANA