Nusantara Capital City Authority

Nusantara Capital City Authority (Indonesian: Otorita Ibu Kota Nusantara)[1] is a cabinet level-agency formed by Indonesian government, working directly under the President of Indonesia. The agency will become a special agency tasked with managing and governing the city of Nusantara, future capital of Indonesia located on East Kalimantan.[2]

Nusantara Capital City Authority
Otorita Ibu Kota Nusantara
Agency overview
Formed10 March 2022 (2022-03-10)
JurisdictionIndonesia (Nusantara)
Agency executives
Websiteikn.go.id

Currently the formation of the Capital Authority is still in preparation.[3] While an already prepared Presidential Regulation was expected to be issued in parallel with the passing of the law by the People's Representative Council (Indonesian: Dewan Perwakilan Rakyat),[4] the regulations as of now are yet to be promulgated by the State Secretariat.[5]

It is reported that the Indonesian government currently drafted nine Government Regulations derived from the law.[6] Among the regulations are also included the regulating instruments regarding the Capital City Authority, in which expected to be finished in two months after the passing of the law.[7] After the Law on State Capital commenced on 15 February 2022, by the mandate given by the law, Joko Widodo is expected to inaugurate the Head and Vice Head as late as 15 April 2022.[8]

A third cabinet reshuffle of Onward Indonesia Cabinet is planned to be done on 10 March 2022. In the third reshuffle, the Head of Nusantara Capital City Authority expected to be inaugurated.[9][10]

Executive and Powers

According to the law, the Authority executive office has power and will enjoy the status of a ministerial office, but with additional unique powers vested to the office.[11] The executive office shall hold both executive power (similar to all provincial governors) and legislative power of a provincial regional representative council, hence no election for provincial governor or legislative body shall ever be held in the future new capital. The capital residents will only participate in three elections: presidential, senatorial, and congressional elections, different from other provinces who may participate up to seven elections.[12] These privileges resulted with the future capital of Indonesia in a unique position among other provinces of Indonesia, even from existing special regions of Indonesia.[13][14][15]

Not only that, based from the law, the executive office of the Authority even has power to appoint the candidates for Nusantara's representatives at People's Representative Council and Regional Representative Council through legalized deal enabled by the law and consultation with General Elections Commission, thus bypassing the requirement for political parties to send their cadres and setting them as political representatives in the lower house DPR or regional representatives in the upper house DPD.[11]

Aside of the unique power given by the executive which combine the local executive and legislative function, the law also granted the executive office other powers in:[11]

  • Providing local investment licensing within Nusantara;
  • Providing easiness for businesses within Nusantara;
  • Providing special facilitation to parties which financially support the preparation, construction, and final move to the new capital;
  • Providing development of Nusantara, its satellite cities, and surrounding areas;
  • Managing finances and assets;
  • Regulating and collecting its own local taxes imposed within Nusantara;
  • Regulating land control, with special land rights and priority rights for purchasing land within Nusantara;
  • Regulating environmental protection and management;
  • Regulating disaster mitigation; and
  • Implementing defense and security through integrated planning mechanisms as regulated through Nusantara Capital City Master Plan and the Strategic Plan for Nusantara Capital City National Strategic Area. For the defense and security affairs, it does not means that the Authority having special forces under its control. The defense and security will still be provided by the central government, but its zonation determined by the Authority.

Structure

To date, presidential decree regulating the structure of the Authority is yet to be promulgated. In a move to gather public aspiration, on 19 March 2022, nine government regulation drafts are officially released by government.[16] Among the drafts, one contained the official governing structure of the capital city.[17] The structure is completely different with the previously leaked information.[18][19] In an official presidential regulation draft, the overall governing body of the capital city shall consist of:[17]

  1. Steering Committee of the Nusantara Capital City Authority (Dewan Pengarah Otorita Ibu Kota Nusantara);
  2. Public Representative Council of the Nusantara Capital City Authority (Konsil Perwakilan Masyarakat Ibu Kota Nusantara); and
  3. Governing Apparatus of the Nusantara Capital City Authority (Perangkat Otorita Ibu Kota Nusantara), which consists of:
    1. Office of the Head of the Nusantara Capital City Authority;
    2. Office of the Deputy Head of the Nusantara Capital City Authority;
    3. Secretariat of the Nusantara Capital City Authority (Sekretariat Otorita Ibu Kota Nusantara), headed by a Secretary of the Authority (Sekretaris Otorita);
    4. Legal and Compliance Unit of the Nusantara Capital City Authority (Satuan Kerja Hukum dan Kepatuhan Otorita Ibu Kota Nusantara), headed by a Unit Chief (Kepala Satuan Kerja); and
    5. Technical Units, each of which is headed by a Senior Project Manager (Manajer Proyek Senior); and
  4. Authority-Owned Enterprises (Badan Usaha Milik Otorita Ibu Kota Nusantara).

The office of the steering committee also were overhauled, as it no longer joined by foreign members. As of the latest draft presidential regulation, the steering committee shall consist of Minister of National Development Planning as chair, and joined with Coordinating Minister of Economic Affairs, Coordinating Minister of Human Development and Cultural Affairs, Coordinating Minister of Human Development and Cultural Affairs, Minister of Finance, Minister of Administrative and Bureaucratic Reform, and Minister of Home Affairs as members.[17]

Nusantara does not possess local representative council working in conjuction with the government as with other cities in Indonesia, but a council called Public Representative Council will be established. The council itself set to only have 17 members. The council members are local East Kalimantan independents and should representing and advocating local people interests. Unlike local representative councils in the rest of Indonesia, the Public Representative Council in Nusantara solely exist to gather public aspirations, to advise the Head of the Authority, and they lack any power to legislate and enact laws, as the power to legislate lay in hand of the Office of the Head of the Authority.[17]

For administrating legal affairs, internal monitoring, and coordinating with law enforcement agencies, Legal and Compliance Unit shal be established within the Authority.[17]

The Authority also empowered to establish one or several Authority-Owned Enterprises, in which the enterprises are to assist the capital movement and management of Nusantara. The Deputy Head of the Nusantara Capital City Authority is ex-officio president commissioner of all authority-owned enterprises.[17]

History

Formation
Promotional logo for the new capital

The idea of moving Indonesia's national capital away from Java had been around for decades. In 2019 during the Widodo Administration, the plan to seriously move the center of power was put forward and announced to the public in a televised speech.[20] During the annual 16 August address in 2019, in the presence of the People's Consultative Assembly (Indonesian: Majelis Permusyawaratan Rakyat) the president then officially inquired the two houses of the legislature for their support in the new capital initiative.[21]

On 18 January 2022, the People's Representative Council (or DPR, the lower house of Indonesian legislature) passed the 2022 State Capital Act (Indonesian: Undang-Undang tentang Ibu Kota Negara), with the future capital named Nusantara.[22] All factions in the house support the passing of the bill into law except PKS, who questioned the necessity of moving the national capital in the middle of COVID-19 Pandemic.[23]

The capital will be governed by Nusantara Capital City Authority, governed by a Head and a Deputy Head, directly answerable to the President as a cabinet-level official. Meanwhile, the formation of the Authority, the appointment of officials, and the transfer of assets and personnel to Nusantara will happen following the issuance of relevant regulations.[24][25]

Early leadership candidates

Four people were reported to have "higher probability" for the candidate:[26]

In addition, on 20 January 2022 President Widodo expressed his intention to set an architect and had experience in regional managing and governing as future CEO of the Authority. Currently, a few of people which met the criteria also added as candidates of the CEO position.[27]

On 29 January 2022, the ruling party PDI-P, officially endorsed Basuki Tjahaja Purnama as candidate of the future CEO of Nusantara. Despite the official endorsement, the party stated that they would leave the choice up to the President.[28] In addition to the endorsement of Purnama, PDI-P also officially confirmed its cadres as future CEO candidates aside of Purnama, Tri Rismaharini, Abdullah Azwar Anas, and Hendrar 'Hendri' Prihadi (the latter is the current mayor of Semarang).[29]

Due to lack of Kalimantan politicians or officials or political figures as candidate of the post, local representative from South Kalimantan Regional Representative Council voiced concerns, as potentially the post might ignore any representation of local Kalimantan people.[30] In response of the lack of native Kalimantan figures in the candidacies, on 15 February 2022 representatives of East Kalimantan locals, promoted their favored local candidates:

Both sultans are local figures respected by East Kalimantan people. Their names were sent to Jakarta to become the candidates of Nusantara CEO and Vice CEO for the President's consideration.[31][32][33][34]

Inauguration of Susantono and Rahajoe as the first Head and Deputy Head of Nusantara Capital City Authority.

On 22 February 2022, Joko Widodo announced his own favored candidate for the executives. While he did not mentioned the name, his revelation of additional criteria of independent non-partisan expert for the office made the previous candidate names become unlikely.[35] At the same time from Joko Widodo announcement, a new name was leaked to the press from unnamed officials that Bambang Susantono, former Vice Minister of Transportation during Second United Indonesia Cabinet (2009-2014) and the Vice President for Knowledge Management and Sustainable Development of the Asian Development Bank became the strongest possible candidate for the office holder.[36][37][38] Reportedly Bambang Susantono who was the second choice candidate became front runner, after the first, Basuki Tjahaja Purnama turned down the offer from Joko Widodo.[39]

On 9 March 2022, Bambang Susantono and Dhony Rahajoe (managing director of the President Office in Sinar Mas Land) will be inaugurated as Head and Deputy Head of the Capital City Authority, and finally inaugurated on 10 March 2022.[40][41]

Governance
Head Deputy Head
# Name Political affiliation Office term # Name Political affiliation Office term
Term start Term end Term length Term Start Term end Term length
1 Bambang Susantono Independent 10 March 2022 incumbent 36 days 1 Dhony Rahajoe Independent 10 March 2022 incumbent 36 days

Criticisms

Indonesian political scientists are alarmed due to the nature and power given to the Authority as institution and very large power hold by the executives, and criticized the form even since the bill under discussion. Indonesian political scientists are afraid that with such large power given by the agency and the executives will lead into formation of "local autocracy" within Indonesia democracy.[42][43][44][45]

On 2 February 2022, a group of citizens filed a constitutional review request to the Constitutional Court. They questioned the need and the legality of the Act, which was promulgated in a speedy manner in the middle of COVID-19 pandemic, as well as the constitutionality of having a capital region directly governed by the central government via the Authority.[46]

National Research and Innovation Agency political researcher Wasisto Raharjo Jati commented, with such power and prestige hold by the Authority, the CEO post is very promising for politicians and there is a chance for the politicians use it as stepping stone for presidency.[47]

Elements within the central government bureaucracy had voiced their reluctance to be transferred to the new capital, with some asked to be transferred to Jakarta local government instead, and thus stay in Jakarta.[48]

References
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