politic

Formation Of Special Regional Government Of IKN, Towards Political Capital 2028

The development of the Indonesian Capital City (IKN) in East Kalimantan continues to progress as part of Indonesia's 2045 vision to create an inclusive world city. With the target of becoming the political capital in 2028, the government through the IKN Authority, the Ministry of Public Works (PU), and the Ministry of Housing and Settlement Areas (PKP) is working together to complete the physical infrastructure while preparing for the formation of the IKN Special Regional Government (Pemdasus). Head of the IKN Authority Basuki Hadimuljono said that the development of the second phase of the IKN involved three main agencies, namely the Ministry of PU, the Ministry of PKP, and the IKN Authority. 

The PU Ministry is focused on completing multi-year projects that began in 2022, such as toll roads, the Vice President's Palace, mosques, wastewater treatment, and roads in the Central Government Core Area (KIPP). A budget of IDR 10.1 trillion has been allocated to complete these projects, with the official budget block being opened on October 15, 2024, as conveyed by Deputy Minister of PU Diana Kusumastuti. 

Meanwhile, the Ministry of PKP, under Minister Maruarar Sirait, will build five additional towers of flats (rusun) for State Civil Apparatus (ASN) and the Ministry of Defense. A total of 27 towers of flats in the IKN are also ready to be inaugurated, showing a commitment to supporting the housing needs of ASN who will move in stages starting in 2025. The IKN Authority itself is responsible for new projects, including an auction worth IDR 5.3 trillion whose budget has been unblocked. This project includes the construction of roads in KIPP (1A, 1B, 1C) worth IDR 3.4 trillion, the arrangement of the Sepaku area so that it does not become a slum, and other supporting infrastructure. The auction for these projects has begun, with the target of signing the contract in mid-May 2025. "In addition, the IKN Authority will also handle the development of the legislative (DPR, MPR, DPD) and judicial (Supreme Court, Constitutional Court, Judicial Commission) ecosystems, including offices and housing, which will be tendered after the initial project contract is completed," explained Basuki in response to Kompas.com, Wednesday (4/23/2025). In addition to the APBN budget, the development of the IKN is supported by the Government and Business Entity Cooperation (KPBU) scheme worth IDR 132 trillion. The KPBU project includes the construction of roads, Multi Utility Tunnel (MUT), 97 apartment towers, 129 landed houses, and Solar Power Plants (PLTS). Investors from Indonesia, Malaysia (IJM), and China Harbor Engineering Company (CHEC) have also contributed, demonstrating global interest in the IKN. Pure private investment has also begun to flow for the development of hotels, housing, retail, and the food and beverage sector, with the ninth stage groundbreaking worth IDR 6.49 trillion. 

Tag: Basuki Hadimuljono IKN Indonesian Capital City Ministry Of Public Works