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The report argues that the relocation of Indonesia's capital to East Kalimantan is a 'mega project' designed to benefit political oligarchs and corporations rather than the public. It highlights that the proposed 180,965-hectare site is not empty land but is already occupied by numerous mining, forestry, and plantation concessions linked to high-ranking politicians and their families. The document warns of severe ecological risks, including the destruction of mangrove ecosystems in Balikpapan Bay, the persistence of coal-fired power plants (PLTU), and the displacement of indigenous groups like the Suku Balik. It further criticizes the lack of public participation and the financial instability of the project, which estimates a cost of Rp 466 trillion.

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  • The proposed New Capital City (IKN) area of 180,965 hectares is already heavily occupied by 162 concessions, including mining, forestry, palm oil, and coal-fired power plants (PLTU).
  • The report identifies significant oligarchic control over the IKN land, specifically naming Sukanto Tanoto and Hashim Djojohadikusumo as dominant concession holders in the first and second rings.
  • The project is suspected of serving as a mechanism for 'whitewashing' corporate environmental crimes, particularly regarding the failure to reclaim 94 coal mining pits within the IKN area.
  • The relocation threatens the Suku Balik indigenous community in the first ring and risks repeating the historical displacement of the Betawi people from Jakarta.
  • Despite government claims of a 'green city' powered by renewable energy, the report notes the continued construction of coal-fired power plants in East Kalimantan and the presence of PLTU Ridlatama Power in the third ring.
  • The project poses a high risk to the Balikpapan Bay mangrove ecosystem, which is critical for carbon absorption and flood protection, with some areas of the first ring categorized as high-risk flood zones.
  • The estimated cost of Rp 466 trillion is viewed as financially precarious, with the government considering the sale or lease of state assets in Jakarta (valued at Rp 1,123 trillion) to fund the project.
  • Public sentiment is divided or negative, with surveys showing 39.8% of respondents nationwide and 95.7% of respondents in DKI Jakarta disagreeing with the relocation.

Cite the original document

APA
Johansyah, M., Rupang, P., Apriando, T., Zamzami, Meutia, H., Saini, A., Suhadi, Z., Birry, A. A., Nasution, M., Indradi, Y., & Prayoga, A. P. (n.d.). RUANG SESAK OLIGARK DAN “PEMUTIHAN”. Trend Asia. https://trendasia.org/wp-content/uploads/2020/09/FINAL-IKN-REPORT-BAHASA-34-Hal.pdf
Chicago
Johansyah, Merah, Pradarma Rupang, Tommy Apriando, Zamzami, Hilda Meutia, Ahmad Saini, Zenzi Suhadi, et al. RUANG SESAK OLIGARK DAN “PEMUTIHAN”. Trend Asia, n.d. https://trendasia.org/wp-content/uploads/2020/09/FINAL-IKN-REPORT-BAHASA-34-Hal.pdf.
Wikipedia
{{cite report |last1=Johansyah |first1=Merah |last2=Rupang |first2=Pradarma |last3=Apriando |first3=Tommy |last4=Zamzami |last5=Meutia |first5=Hilda |last6=Saini |first6=Ahmad |last7=Suhadi |first7=Zenzi |last8=Birry |first8=Ahmad Ashov |last9=Nasution |first9=Marina |display-authors=etal |title=RUANG SESAK OLIGARK DAN “PEMUTIHAN” |publisher=Trend Asia |url=https://trendasia.org/wp-content/uploads/2020/09/FINAL-IKN-REPORT-BAHASA-34-Hal.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{johansyahndruang, author = {Johansyah, Merah and Rupang, Pradarma and Apriando, Tommy and Zamzami and Meutia, Hilda and Saini, Ahmad and Suhadi, Zenzi and Birry, Ahmad Ashov and Nasution, Marina and Indradi, Yuyun and Prayoga, Anggi Putra}, title = {{RUANG SESAK OLIGARK DAN “PEMUTIHAN”}}, institution = {Trend Asia}, url = {https://trendasia.org/wp-content/uploads/2020/09/FINAL-IKN-REPORT-BAHASA-34-Hal.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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