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IKN project should continue, says ex-Nusantara deputy

Dhony Rahajoe has insisted that development of the nation's new capital in East Kalimantan must continue for "a better future", just a day after his and his superior’s resignation was announced on Monday.

News Desk (The Jakarta Post)
Jakarta
Tue, June 4, 2024 Published on Jun. 4, 2024 Published on 2024-06-04T10:56:30+07:00

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IKN project should continue, says ex-Nusantara deputy Cranes, scaffolding and heavy equipment stand on Dec. 7, 2023 at the construction site of the Central Government District (KIPP) in Nusantara, the new capital city under development in North Penajam Paser regency, East Kalimantan. (Antara/M Risyal Hidayat)

T

he former deputy head of the Nusantara Capital City (IKN) Authority, Dhony Rahajoe, has said the project to develop the nation’s new capital in East Kalimantan must go on.

The dual resignation of Dhony and IKN Authority head Bambang Susantono was announced on Monday, a little over two months ahead of the inauguration of the new capital Nusantara on Independence Day. Analysts said the pair’s shock departure could send a bad signal to potential investors.

“We need to continue supporting the ongoing construction of Nusantara. Realizing the new capital city is the responsibility of us all. It is a chance to build a better future for Indonesia,” Dhony said in a statement released on Monday evening.

“Even though I no longer serve the IKN Authority, I will always support the project to build Nusantara as a sustainable city, an economic hub and a symbol of Indonesia’s diversity,” he stated.

Read also: IKN Authority leaders quit before new capital's August inauguration

The resignation of the IKN Authority leaders came amid lackluster funding from the private sector, particularly foreign investors, which the government had initially hoped would supplement the state budget in financing the massive development project.

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Though many foreign investors expressed interest in funding the project in the remote and forested area of East Kalimantan, none have made good on their commitments. Others have been involved indirectly, such as by offering concepts, sharing knowledge and providing technical assistance in smart city and green developments.

Read also: Basuki hopes investors can maintain confidence in Nusantara projects

But Public Works and Housing Minister Basuki Hadimuljono, now serving as interim head of the IKN Authority, said he believed investors could maintain their high confidence in the project that aimed to replace overcrowded, rapidly sinking Jakarta as the nation’s capital.

"I don't think there will be a problem. In fact, I am expecting the level of confidence to now be even higher, since a minister and a deputy minister have replaced [Bambang and Dhony],” the minister told reporters on Monday.

In addition to Basuki, President Joko “Jokowi” Widodo has appointed Deputy Agrarian and Spatial Planning Minister Raja Juli Antoni as interim deputy head of the IKN Authority. (ipa)

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