Indonesian Govt Allots Rp90 billion for Resident Compensation at New Capital Project

TEMPO.CO, Jakarta - Minister of Public Works and Housing Basuki Hadimuljono said the government has prepared a budget of around Rp90 billion for residents affected by the Nusantara Capital City (IKN) development project. The compensation is intended for land owners that will be used for the toll road section 6a and 6b projects, as well as the Sepaku flood control project.

"It’s been processed by the integrated team," said Basuki on Friday, August 2, 2024.

Basuki explained that the government had cooked up a Social Impact Management (PDSK) Plus scheme by preparing relocation housing for the residents. At least 91 families would receive this compensation. However, President Jokowi then signed Presidential Regulation Number 75 of 2024 concerning the Acceleration of IKN Development.

"Thus, the asset becomes financial compensation, but it will be further discussed later,” he said. 

Basuki said his side has asked the Ministry of Finance to allocate the budget as the IKN Authority has limited finance. 

Furthermore, Basuki claimed that the government would not evict residents whose land was affected by the construction of the new capital city in East Kalimantan. He promised that the government would heed the residents’ interests and would move the affected residents to a better place. 

"It won’t be an eviction. Relocation, possibly,” he said. “Both have a different meaning.” 

As previously reported, around 2,086 hectares of land is yet to be acquired for the IKN project. 

The East Kalimantan Indigenous Peoples Alliance (AMAN) had asked the government not to rush in resolving this land issue. AMAN East Kalimantan Chair Saidani Nyuak said a hasty approach would potentially violate the human rights of the indigenous people in East Kalimantan. 

Saiduani also warned the government not to forcibly evict local residents. The government, he said, must protect the customary areas that have been controlled for generations in the region. 

"The government must pay attention to the existence of indigenous people who have lived there for generations, and prioritize development with the perspective of human rights protection," Saiduani told Tempo via a messaging application on May 10, 2024.

RIRI RAHAYU

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