Remarks of President of the Republic of Indonesia during the Groundbreaking Ceremony for Bank Indonesia Office in Nusantara Capital, North Penajam Paser, East Kalimantan Province, November 2, 2023
Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullahi wabarakatuh,
Good afternoon,
May prosperity be upon us all,
Shalom,
Om swastiastu,
Namo buddhaya,
Greetings of virtue.
Honorable Governor of Bank Indonesia Bapak Perry Warjiyo and all Deputy Governors of Bank Indonesia in attendance;
Honorable Ministers of Indonesia Onward Cabinet;
Honorable Chairperson of Authority of Nusantara Capital, Governor of East Kalimantan, and Regent of North Penajam Paser, and CEO of Kompas Gramedia Bapak Lilik Oetama, CEOs in attendance;
Ladies and Gentlemen and Honorable Guests.
I still have people asking me, “Sir, why do we move to East Kalimantan province? Move to Nusantara Capital?” Some people still ask me about that.
So we know that to date our population has reached to 278 million people, and 56 percent of them are living in Java island. Fifty six percent of the population are living in Java island out of 17 thousand islands that we have, 56 percent. Second, economy. Fifty eight percent of our economic circular flow, 57-58 percent of which is in Java island, Jakarta in particular. So, the burden carried by Java island, by Jakarta, is over capacity.
Secondly, we need equality in development, economy, and infrastructure. Therefore, our first president, Bung Karno, had already idea and plan to relocate the capital city. Pak Harto also shares the same idea to relocate the capital city from Jakarta. Then, nine years ago, in private, I formed a team to review the ideas that have been shared by the first president, the second president, and so forth. And finally, after six years of a study, calculation, and consideration, we came up with some options, some options, and finally we decided that our new capital city, the capital city of our country is Nusantara.
We fund the construction of government’s buildings, 20 percent of basic infrastructure and government buildings are funded through the State Budget and the 80 percent are offered to the private sector, the business world, the private sector through private public partnership (PPP) scheme.
Also, I am glad that the Government has started it by building the presidential palace, the ministers’ offices, and so on, to date we have estimated that until December, a total budget of Rp45 trillion will be provided to start a construction work in Nusantara Capital. There will be five hotels to be built soon, four five-star hotels, one four-star hotel, and also four hospitals and schools. It is because the state civil apparatus who will be assigned there keep asking, “Pak, what if our children are sick, is there any hospital?” Now, I can answer, “yes, there are four hospitals in construction process. That is the answer. And then, they also ask, “Pak, our children need schools, is there any school with good quality here?” Yes. Yesterday, I have inaugurated the groundbreaking ceremony for JIS, but here, the name will be NIS. So, Jakarta Intercultural School will be Nusantara Intercultural School. So, if you want to move here, the school will be ready. Soon, the state schools will be built; kindergarten, elementary school, junior high school, senior high school will be built. So, the answer is it will be ready.
Then, “Pak, where to go shopping, no malls, only trees?” We have done groundbreaking ceremonies for two malls, two big malls that will be built.
“Then, what if my children want to play football?” There will be a training center of PSSI (Indonesian Football Association), FIFA has already transferred (the fund) to Pak Erick last month. We hope that in April, or at least May, eight football fields for PSSI’s training center will be ready.
Today, we do a groundbreaking ceremony for Bank Indonesia Office in Nusantara Capital. If Bank Indonesia is started to be built, so, what do we do? The central bank manages all the money.
Once again, building Bank Indonesia’s office complex in IKN will develop trust in business sector and investors, because the monetary authority, banking sector, and payment system are ready and prepared to support IKN establishment, as well as ready to support a sustainable economic growth in Nusantara Capital. The groundbreaking ceremony has proved our commitment and readiness to build IKN as a world-class capital.
That concludes my remarks on this good occasion. By saying bismillahirrahmanirrahim, in this afternoon, I officially inaugurate the groundbreaking ceremony for Bank Indonesia office complex.
Thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.
(AW/MUR)