Land Development Contract in New Capital Is Still on Hold


The State Capital mega project development in the East Kalimantan will actually start in August 2022. However, until now, the Ministry of Public Works and Public Housing (PUPR) still has not received a budget for the Nusantara Capital City (IKN) construction.

The Head of the PUPR Ministry’s Infrastructure Development Implementation Task Force, Danis Sumadilaga, explained that his party was discussing the budget implementation list (DIPA) with the Ministry of Finance which was expected to be completed this week in stages.

Danis said if the DIPA has been obtained, then the PUPR Ministry will be able to start signing IKN development contracts. Currently, the contracts that are still waiting for the budget to be signed are related to land mapping contracts or land development at IKN.

“Yes, it has not been [signed], the DIPA is being discussed,” said Danis to Bisnis, Monday (25/7/2022).

Danis added that the work package that will soon be worked on in the IKN construction next August is mapping the land for which the contract has been prepared.

“If it is necessary, groundbreaking can be done,” he said.

Previously, Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono stated that infrastructure development at IKN would begin soon. This was marked by the signing of a land mapping contract on 15 July 2022.

Basuki said that currently, the progress of IKN development has entered the land development phase or land mapping. After land mapping, the government will start the construction of basic infrastructures such as toll roads and national roads which are the main access to IKN.

“Land development is the result of plots, which are the Palace plots, which are the DPR plots,” said Basuki.

PUPR Minister Basuki Hadimuljono said that his party had written an official letter to the Ministry of Finance regarding the budget needs for the 2022 IKN development.

Basuki said that the PUPR Ministry only handles some work in IKN development projects such as basic infrastructure, toll roads, national roads, raw water supply, drainage, and government offices.

He added, “The April proposal for 2022 is IDR 5 trillion, now there are some that have been auctioned and some will be auctioned this June.”