JAKARTA (ANN/JAKARTA POST) – The Indonesian government is facing backlash over what critics describe as extravagant spending for this year’s Independence Day celebrations in Jakarta and Nusantara, the country’s future capital under construction in East Kalimantan.
The increased budget has ignited public discontent, with many questioning the administration’s priorities amid economic difficulties.
Chico Hakim, spokesperson for the Indonesian Democratic Party of Struggle (PDI-P), criticized the expanded budget as “wasteful” and insensitive given the widespread financial struggles, including mass layoffs, rising prices of essentials, and escalating education costs. “It’s a display of President Joko ‘Jokowi’ Widodo’s insensitivity as his term concludes. The public is grappling with significant financial hardships,” Chico said on Saturday, as reported by Media Indonesia.
Lawmaker Guspardi Gaus of the National Mandate Party (PAN) shared similar concerns, calling for transparency regarding the expenditures for the celebrations in Nusantara. “The public may perceive the government as detached from their economic struggles, particularly with reports of around 1,000 luxury cars and numerous hotel rooms being rented for the celebrations in Nusantara,” Guspardi, a member of the House of Representatives Commission II, said on Sunday, according to CNBC Indonesia.
President Jokowi defended the budget increase, explaining that the celebrations this year would span two cities. “The increase is justifiable due to the transition period and the dual-city celebrations. There’s no significant leap in spending,” he stated on Friday, as quoted by Tempo.co.
State Secretary Pratikno confirmed the budget had been raised, attributing it to the higher costs of hotels and transportation in Nusantara. He dismissed concerns over the budget, calling the increase “not significant” and deferred specific details to Presidential Secretary and interim Jakarta Governor Heru Budi Hartono.
Reports by state-owned news agency Antara have suggested that the government plans to rent 1,000 luxury cars for VVIPs and state guests attending the Nusantara flag-raising ceremony. According to these reports, the State Secretariat has signed a memorandum of understanding (MoU) with the East Kalimantan Association of Regional Car Rental Businesses (Asperda) and paid a 50 per cent down payment. The daily rental rate for these cars, some of which need to be sourced from outside East Kalimantan, is reportedly around IDR25 million (USD1,640), which has faced significant public criticism.
In contrast, basic rental rates in Jakarta for August 17 range from IDR575,000 for a Toyota Agya to IDR1.14 million for a Toyota All New Voxy.
Damun Kiswanto, East Kalimantan’s head of Asperda, denied the reported rental figures, stating that no MoU had been signed with the government. “What I mentioned was a theoretical requirement for 1,000 vehicles to accommodate 3,000 guests. We have not signed any MoU,” Damun said.
Transportation Ministry spokesperson Adita Irawaty confirmed that the ministry would provide 97 buses for transporting guests and participants to the Nusantara flag-raising ceremony.
