What Will happen to State Assets If the Capital Moves?

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The capital city of Indonesia is in the process of being moved to East Kalimantan Province. This move raises the question, what is the fate of state assets such as government buildings and the Gelora Bung Karno sports area? The Ministry of Finance answered.

The Director of State Wealth Policy Formulation, Directorate General of State Assets (DJKN), Ministry of Finance Encep Sudarwan explained that the relocation of IKN to Penajam Paser Utara would leave several government buildings empty. The state civil service is one of the groups that will move there first.

“We will optimize the assets in Jakarta. We will optimize all Jakarta assets if we move [to IKN], government buildings, what we will optimize for,” said Encep on Friday (22/7/2022).

In addition to government buildings, state property in Jakarta includes GBK sports facilities. Encep said that the GBK would not become empty because several people were left to IKN, but his party continued to optimize the GBK.

“Of course, it will be optimized, there is a name for the use of BMN. It can be leased, cooperation in utilization, or cooperation in providing infrastructure. The point is [to have] non-tax state revenue [or PNBP from that use],” said Encep.

He also gave an example that in the future, the private sector can use a building that is currently still a government building. However, it is clear that the country’s assets will not be sold.

“Not for sale, yes, it will be used,” said Encep.

As previously noted, The plan to move the state capital (IKN) to a new area, East Kalimantan, has entered the construction phase. The latest news says that three initial mega projects will start working next August.

This was conveyed by the Minister of Public Works and Public Housing Basuki Hadimuljono. He explained that he would start the construction of IKN’s basic infrastructure in August 2022. Especially for road and bridge infrastructure.

Currently, the Indonesian government has also received grants in the pipeline process, namely the Feasibility Study (feasibility study) and the Basic Design of the underwater toll road or the Balikpapan Bay immersed tunnel (IKN Access Toll Road).

“In addition to SHMS (Structural Health Monitoring System) and ITS (Intelligent Transport Systems) FS and Basic Design will also be prioritized for IKN access roads because we will start building IKN basic infrastructure in August 2022,” Basuki said in a statement, quoted (23/23). 6/2022).

However, previously there have been several infrastructure developments that have started construction in IKN and this is the initial lockdown from President Jokowi as a certainty that the IKN project is running.