IKN Act Oversees New Capital Relocation Budget Sources
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21 February 2022 13:11 WIB
TEMPO.CO, Jakarta - The financial sources to fund the construction of Indonesia’s new capital city (IKN) of Nusantara is one of the crucial aspects discussed in Law No.3/2022 new capital act, which revealed will be sourced from State Budget (APBN) and other legitimate sources in accordance with the provisions of the legislation.
The use of the two sources of funds will be prioritized to move the capital city that is aimed to be completed as soon as 10 years, or during the third construction phase of Nusantara.
According to the IKN Act, the tax collections will be under a special scheme under the IKN Authority that will be regulated under a dedicated regulation that must be approved by the House of Representatives (DPR).
The new capital authority will later consist of a state apparatus that will be headquartered from Jakarta to the new location in East Kalimantan. The newly passed law also states that there are a number of international government representative offices that will also move to the new location.
Previously reported, President Joko Widodo or Jokowi predicted the move would cost up to Rp501 trillion where 19 percent of it will be sourced from the State Budget.
Read: Jokowi to Appoint Authority Head, Deputy Head of New Capital Nusantara City
M JULNIS FIRMANSYAH
