Jakarta's Global City Plan to Require Rp600tn, Acting Governor Says
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Editor
6 September 2024 17:47 WIB
TEMPO.CO, Jakarta - Acting Governor of Jakarta, Heru Budi Hartono, said Jakarta would require Rp600 trillion to transform into a Global City. The government previously raised the topic after the decision to transfer the capital city to Nusantara Capital City (IKN) in East Kalimantan.
Heru Budi explained that Jakarta would inevitably lose its status as the country’s capital after parliament released the Law on Special Regional Province of Jakarta in May 2024. In 20 years, he said, Jakarta as a Global City will become a center for Southeast Asia’s economic growth.
“To achieve that, Jakarta will require an infrastructure development worth approximately Rp600 trillion. Meanwhile, the regional fiscal capacity only reaches Rp80 trillion per year,” he said on Friday, September 6, 2024.
Thus, Heru Budi said, the provincial government needs investment support, both domestic and foreign. According to the Acting Governor, Jakarta’s cumulative investment realization in the second quarter of 2024 amounts to Rp62 trillion. These include both domestic and foreign investments.
This achievement is equivalent to 14.5 percent of the national investment realization in the same period. Meanwhile, Jakarta contributes 15.54 percent to Indonesia’s economy.
On the other hand, the budget for the IKN in 2025 dropped significantly compared to 2024 at Rp143.2 billion. Referring to the report of the Tempo Newspaper on Monday, August 26, 2024, edition, the drastic decrease in the IKN budget is stated in the 2025 State Budget Bill.
"The budget allocation dropped because the fund must be shared (with other programs). However, IKN remains a priority for Prabowo-Gibran," said the Spokesperson for the Prabowo-Gibran National WinningTeam (TKN), Viva Yoga Mauladi, when contacted by Tempo on Tuesday, August 27, 2024.
HAN REVANDA PUTRA
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