Tuesday, September 26, 2023

Nearly 17,000 Central Government Employees to Relocate to Nusantara

Fuad Iqbal Abdullah
August 19, 2023 | 11:20 pm
Workers build a home at Grandcity Balikpapan residential project in Balikpapan, East Kalimantan, Thursday, July 6, 2023. (Fuad Iqbal Abdullah)
Workers build a home at Grandcity Balikpapan residential project in Balikpapan, East Kalimantan, Thursday, July 6, 2023. (Fuad Iqbal Abdullah)

Jakarta. In preparation for the migration of central government employees to the new capital Nusantara in East Kalimantan from Jakarta, the government is making arrangements for approximately 16,990 employees to begin the move early next year, an official said on Saturday.

The government will soon commence the construction of residential structures to accommodate the massive influx of central government employees into the prospective capital.

Thomas Umbu Pati Tena, the deputy chairman of the National Capital Nusantara Authority, said the initial development phase will prioritize essential infrastructure to ensure the livability of the new capital location in North Penajam Paser Regency, East Kalimantan province.

Following this, the construction of houses and apartments will ensue.


The initial phase is financed through the state budget, with an allocation of Rp 45.57 trillion (approx. $3 billion).

The first wave of relocation will primarily comprise employees from defense and security agencies, he added.

"We anticipate the arrival of 16,990 people, but we will adjust the capacity based on the ongoing progress of residential construction," he said.

He said work is currently in full swing to build the presidential office, secretariat office, and ministerial buildings at Nusantara.

The authority is collaborating with private developers for the construction of residential complexes.

For instance, Sinarmas Land Group's property development subsidiary, Grandcity Balikpapan, is set to undertake a project to build 1,500 upscale houses intended for high-ranking civil servants.

Meanwhile, lower-ranking state employees will inhabit high-rise apartments that will be built by another developer, Agung Podomoro Land.

Nusantara Authority head Bambang Susantono said recently that the development of the new national capital will witness significant progress with the active involvement of private companies.

"In simpler terms, we will witness private companies commence construction next month, not just signing agreements," Bambang stated.

"By the following year, Nusantara will encompass not only government edifices but also parks, healthcare facilities, schools, and shopping centers constructed by national private companies," he added.

Bambang further disclosed that the authority has secured investment commitments from private companies amounting to Rp 10 trillion ($653.5 million) thus far, and this figure is anticipated to increase.

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