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#BERSIHKANINDONESIA 1 EXECUTIVE SUMMARY There is also one coal power plant in the third ring Panca Pesona, and PT. Panca Arta Mulia Serasi. THE OLIGARCHY AND of the new capital city region. The plant received its These companies are owned by the Novanto family RESPONSIBILITY ANNULMENT permit for construction under the banner of PT. Indo and is located in the second ring of IKN. Ridlatama Power (PT. IRP), located in Muara Jawa 1 The name of also appears On August 26th 2019 , President Joko Widodo Indonesia Hutani Manunggal (PT. IHM). district, of Kutai Kartanegara Regency. Luhut Binsar Pandjaitan in this report. This coal mining company owner is announced the relocation of the capital city from The central core of the government is located fully are spread throughout the related to this case through PT. Toba Group, which DKI Jakarta to East Kalimantan. Jokowi announced inside the concession owned by PT. IHM, while the 94 former mining pits IKN area. Most of the pits came from the operations has subsidiary companies of PT. Adimitra Baratama that the relocation is a mega project that would second ring that is 42.000 hectares wide covers the of five companies: PT. Singlurus Pratama (22 pits), PT. Nusantara, PT. Trisensa Mineral Utama, PT. Kutai take place in the regencies of Penajam Paser Utara concession owned by both PT. IHM and PT. IKU. (PPU) and Kutai Kartanegara. The new area for the Perdana Maju Utama (16 pits), CV. Hardiyatul Isyal Energi, PT. Indomining and a palm oil company PT. capital city is approximately 133.321 hectares. Former Minister of National Development (10 pits), PT. Palawan Investama (9 lubang), and CV. Perkebunan Kaltim Utama I; all of these companies and Planning/Head of Bappenas, Bambang Amindo Pratam (8 pits). are located in Muara Jawa district, which is also inside Simply put, the new capital city area (IKN) is Brodjonegoro, confirms that the first stage of of the third ring of IKN. These companies owned by divided into three zones or “rings”. The first ring construction of the new national capital will take The investigation carried out in this report found Luhut left 50 mining pits that are still gaping wide, and is 5.644 hectares wide and is called Kawasan place on 6.000 hectares of land owned by PT. the names of potential benefiters of the project, it seems that these companies will benefit from being Inti Pusat Pemerintahan (central core of the IHM (owned by Sukanto Tanoto). 2 In a few media including national and local politicians and their whitewashed off of the obligation of reclamation. government area), the second ring is 42.000 reports, though, the government is the owner families that own concessions for extractive Not far from the area, another concession owned by hectares wide and is called Kawasan Ibu Kota of said land and they can make use the land industries. Negara (national capital area, or IKN), and the Yusril Ihza Mahendra, head lawyer of the Jokowi- whenever they want. If we take a look at the first and second ring of third ring is 180.965 hectares wide and is called Ma’ruf Amin legal team in the 2019 election dispute. the IKN, then the ownership of concessions there Kawasan Perluasan Ibu Kota Negara (national But will the companies that hold permits leave Yusril’s name is listed as owning shares, as well as are dominated by Sukanto Tanoto and Hashim capital expansion area). the land just like that? What compensations will being the Main Commissary for the mining company . The rest of the concessions, 158 they receive? Djojohadikusumo PT. Mandiri Sejahtera Energindo Indonesia in Sepaku There are two forest concessions in this region in total, are owned by other businesspersons working District, located in the second ring of IKN. owned by two different companies. The two also Other than the two forest concessions above, in the sectors of mining, palm oil, and forestry. carry different forest utilization permissions. The there are also 10 plantation concessions in the Since the beginning the transactions happened Hashim Djojohadikusumo is also the Main first is Izin Usaha Pemanfaatan Hasil Hutan Kayu- IKN area. Eight concessions are located in the between the government and the concession Commissioner of PT. International Timber Hutan Alam (IUPHHK-HA, for natural forests) and second and third rings, which are in the districts owners, not the people. These companies will Corporation Indonesia Kartika Utama (PT. ITCI KU), is owned PT. International Timber Corporation of Samboja, Muara Jawa, and Sepaku. The largest benefit and become targets for negotiation by that holds the IUPHHK-HA permit for an area 173.395 Indonesia Kartika Utama (PT. IKU), the second is concession, 17.000 hectares wide, is owned by the government, including the responsibility hectares wide, in the second ring of the IKN. Hashim Izin Usaha Pemanfaatan Hasil Hutan Kayu-Hutan PT. Perkebunan Inti Kaltim Utara I and is strongly annulment of mining pits that should have been is the younger brother of Prabowo Subianto, Tanaman (IUPHHK-HT, for planted forests) and is connected to the family of Luhut Binsar Pandjaitan, reclaimed. Minister of Defence in the Indonesia Maju cabinet. owned by PT. International Timber Corporation Coordinating Minister of Maritime and Investment Different type of land owners and permit holders have the Jokowi - Amin ministerial cabinet. Besides Hashim, there is also Rheza Herwindo, the different fates. Until now, it seems that corporations son of former Golongan Karya Party chairperson and have a larger chance of negotiating with the 1 https://nasional.kompas.com/read/2019/08/26/13351161/jokowi-ibu-kota-baru-di-sebagian-penajam-paser-utara-dan-kutai- alleged perpetrator of the E-KTP corruption case kartanegara?page=all government than the people. For the local villagers, Setya Novanto. Rezha’s name is listed in three coal 2 detikFinance. 18 September 2019. Achmad Dwi Afriyadi. https://finance.detik.com/properti/d-4711795/kepala-bappenas- what will happen to their villages once the project benarkan-lahan-ibu-kota-baru-dikuasai-sukanto-tanoto mining companies: PT. Eka Dwi Panca, PT. Mutiara commence is still a mystery shrouded in rumors. Photo: ©JATAM Nasional & JATAM Kaltim Nasional & JATAM Photo: ©JATAM 2 3 Photo: ©JATAM Nasional & JATAM Kaltim Nasional & JATAM Photo: ©JATAM he plan to move the capital of budget request from Indonesian National Armed relocation of the capital around the world, it was, in Planning Agency (BAPPENAS) and the continuity of Indonesia out of Jakarta to East Forces (TNI) for relocation of the Headquarter of fact, need more than a decade of preparations for this preparations with the winning of IDR 25 billion worth Kalimantan was officially put forward on Indonesian National Armed Forces.4 This decision also kind of mega project, plus it needs the support of a tender of McKinsey Consultant for the pre-masterplan T August 26, 2019. We have heard from appears to be a mega concession sharing project for strong economic growth to maintain the financing. It study on the new National Capital project. 7 the government’s press conference businessmen and oligarchs after presidential election. is the luxury that we simply do not have at this time on some of their main reasons of why the capital of stagnant economic growth, even worse the state is needs to be moved, and why it is being moved to As it should have been a public decision making, at risk of decline growth in the following years. 6 It is NOT A VACANT SPACE Kalimantan. The reasons stretched from how Jakarta the current processes were ‘total disregard” for the not surprising if there are questions that emerge in the no longer fits as a location for government offices, voice and rights of indigenous peoples and local public: Is this plan merely forced to assure that there’s On August 26, 2019 8, President Joko Widodo has the problem of clean air, clean water, transportation, communities, and overlook the environmental crisis a ‘legacy’ from Jokowi’s Administration? Unfortunately, announced that the capital of Indonesia will move population density, the disaster risk of Jakarta that is that escalated in many ways and layers. The plan the future consequences will be a grand homework from DKI Jakarta to East Kalimantan, precisely at the higher compared to East Kalimantan. The government is not more than the grand mega-plan for more borne forcedly in the shoulder of the next generation; administrative region of North Penajam Paser (Penajam also brushed on the importance of having a capital exploration of dirty energy that comes from coal from the risk of debt and financing problems, the risk Paser Utara/PPU) Regency and Kutai Kartanegara that located precisely in the center of archipelago, for mining and it is feared that the whole relocation plan of failure to protect environmental carrying capacity Regency that will be built as a mega project. increasing the rate of economic growth and equitable is just a bunch whole of corruption and collusion and the risk of the social conflicts. mega-project that comes from concession sharing. growth out of Java to Kalimantan. If its consistent with the proposed area that If that’s the case, is the Regardless of the ‘warning’ from the public and expert relocation plan is really for proposed by The National Development Planning The above reasoning still lack depth. There are many opinions, it seems the government will continue the public interest? Agency (BAPPENAS), in total, it will reach 180.965 aspects need to be revealed. This report is aims to push forward with this plan. It was stated by the hectares 9, then there are 4 sub-district that included, to point out that the decision of this mega-project The issue of the new capital already creates a newly elected Head of The National Development (relocation of the capital) that will cost about Rp466 huge buzz, while the basis of its justification is not trilion 3 is not more than a clemency effort for the sufficiently strong.