New Capital City Spokesman Explains Crowdfunding Concept

TEMPO.CO, Jakarta - The spokesperson for the new capital city (IKN) Sidik Pramono on Friday gave a clarification about the plan on launching a crowdfunding program for the construction of the new capital in East Kalimantan. Information about this source of funding was initially revealed by IKN head authority Bambang Susantono in an interview with Tempo.

Sidik maintained that crowdfunding would only be one of a wide array of funding alternatives outside the country’s state budget (APBN). He also elaborated that this gives an opportunity for the public to actively participate financially in the construction of public and social facilities. 

“It is voluntary, no one’s forced into it and the public themselves will be the initiator,” said Sidik on March 25. 

The Indonesian government scheduled the construction of the new capital city to run until 2045 with the first phase of construction planned to be finished by 2024, setting the stage for the core governmental area. On the independence day commemoration later on August 17 this year, the government plans to hold a ceremony at the East Kalimantan site and mobilize 60,000 state employees to attend the event. 

According to Sidik, other sources that are legal in accordance with the law for the new capital city construction are the use of state property, the use of assets under control, and the use of government and business entity cooperation schemes. There are also private sector contributions in the form of creative financing, crowdfunding, philanthropic funds, or corporate social responsibility (CSR) funds.

Read: Govt Explores Potential of Crowdfunding for New Capital Project

FRANCISCA CHRISTY ROSANA