Jokowi Calls for Agility of New Capital Authority in Obtaining Funds
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15 March 2022 19:18 WIB
TEMPO.CO, Jakarta - President Joko “Jokowi” Widodo on Tuesday said that the government’s initial calculation for the construction cost of the new capital in East Kalimantan will need Rp466 trillion. He asked the newly-appointed new capital head authority Bambang Susantono to “move swiftly” in search of alternative funding sources.
This came following the reports that Softbank Group, which previously showed interest in funding the ambitious project, announced that it would not invest in the construction of the new capital of Indonesia.
“I would hope that the authority will be flexible and agile in obtaining funding schemes from [various sources],” said the President in a state broadcast from the Presidential Secretariat Youtube channel on March 15, Bisnis.com reported.
The President assured the public that the project will only use 20 percent of the State Budget while the rest will take funds from public-private placements.
Jokowi also mentioned that funding will come from a partnership scheme between state-owned enterprises, the private sector, and the public funding sector. “Everything will be realized,” he said.
The legal standing for the funding of the new capital construction is mentioned in the New Capital City Act (UU IKN) that was passed in a House Plenary on January 18, 2022.
Read: New Capital Development Potentially Displaces 20,000 Indigenous People: Jatam
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