DKI Assets Will Be Used to Fund New Capital City, Ministry of Finance: We Don’t Fire Sale

TEMPO.CO, Jakarta – Government mentions that there is a plan to use existing assets in DKI Jakarta to fund the new State Capital (IKN) project or capital new in East Kalimantan.

Director of State Property, Directorate General of State Assets, Ministry of Finance, Encep Sudarwan explained, the total value of assets in DKI Jakarta in the form of buildings and land in 2020 is around Rp. IDR 1,000 trillion.

“Because assets in Jakarta want to be abandoned, we will optimize that so we can get funds for development in the new capital city,” said Encep, Friday, November 26, 2021.

These assets, according to Encep, do not have to be sold, but can be just rented out and the proceeds are used for projects the nation’s capital the. Currently, the government is sorting out which assets can be used to finance projects for the new capital city.

In its implementation, Encep also ensures that the government will not rush in selling or leasing the assets worth Rp 1 quadrillion.

“But we don’t fire sale, we are not in a hurry. Later the price will be low,” said Encep. “We also don’t want to disturb the market, so we’ll see how it is optimized.”

Furthermore, Encep explained that last year’s total state assets reached Rp 11,098.67 trillion. This value increased by 6.02 percent when compared to 2019 which was Rp 10,467.53 trillion.

As for President Joko Widodo or Jokowi previously mentioned that the construction of a new capital city would cost US$ 35 billion or around Rp 502 trillion (assuming an exchange rate of Rp 14,340 per US dollar).

This was conveyed when he attended the Indonesia – United Arab Emirates (PEA) Investment Forum which took place in Dubai, Thursday, November 4, 2021. Jokowi declares development IKN it is one of the priorities of cooperation between Indonesia and the United Arab Emirates.

The second priority after the construction of the new capital city is in the area of ​​energy transition by inviting investors and technology at affordable prices. While the third priority mentioned by the head of state is in the trade sector.


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