"BI office in IKN can increase the confidence of the public, business world, and investors because the monetary, banking, and payment system authorities already exist and (are) ready to support the development of IKN," he explained at the groundbreaking ceremony for a BI complex at IKN Nusantara, East Kalimantan, which was broadcast via video on Thursday.
The groundbreaking ceremony for the central bank office reflects Indonesia's seriousness and commitment to building IKN as a world-class capital city, he added.
He then recounted the reasons for shifting the Indonesian capital from Jakarta to East Kalimantan.
According to him, Indonesia currently has 278 million people, of whom 56 percent live on Java Island.
"From 17 thousand islands that we own, 56 percent of our population live in one island," he pointed out.
He then highlighted that Java, particularly Jakarta, accounts for 57–58 percent of the national economic turnover. Therefore, the burden on Java Island, especially Jakarta, already exceeds the island's capacity, he said.
In addition, Indonesia needs uniform development, economic growth, and infrastructure as well, he added. Thus, the idea of moving the nation's capital has existed since the first Indonesian president Soekarno and the second president Soeharto.
He said that nine years ago, he had secretly formed a team to review the ideas of the previous presidents.
"After six years of study and calculations, the government had several options and we chose the new capital here," he informed.
The President said that 20 percent of the IKN area, in the form of basic infrastructure and government buildings, will be financed by the state budget, while the remaining 80 percent will be covered by private sector investment.
"From our calculation, until the end of 2023, the infrastructure works in IKN will be worth Rp45 trillion," he added.
Regarding other facilities, Widodo said that the construction of four hospitals and schools at IKN will begin soon, followed by four five-star hotels and one four-star hotel.
"Regarding school, Jakarta Intercultural School will also open here, but the name was changed to Nusantara Intercultural School," he added.
In addition, two large shopping centers and a training center for the Indonesian Football Association (PSSI) will also be built in the new capital.
"The work for the PSSI training center started last month. PSSI had received a transfer from FIFA and we hope that by April or May next year, eight football fields for the PSSI training center will be completed," he informed.
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Translator: Rangga Pandu A J, Resinta Sulistiyandari
Editor: Azis Kurmala
Copyright © ANTARA 2023
