State Budget to be Backbone of New Capital City Construction: Observer
17 April 2022 19:35 WIB
TEMPO.CO, Jakarta - Infrastructure observer from The Housing and Urban Development (The HUD) Institute Yayat Supriatna has viewed that the state budget (APBN) will be the main backbone of Nusantara capital city (IKN) construction funding in 2024.
"The APBN is the main backbone of IKN for 2024," Yayat told Antara on Sunday.
Currently, for acceleration of the IKN development until 2024, the main focus is on APBN funds, and most works such as constructions of roads and water utilities will be handled by the Ministry of Public Works and Public Housing, according to him.
The strength of the APBN is the forerunner of IKN to attract the attention and interest of both domestic and foreign investors , he said.
"With quality infrastructure standards and good services, investors will be interested in investing in IKN," he added.
Minister of Finance Sri Mulyani Indrawati recently said the government had reserved a budget of Rp27-30 trillion in the 2023 State Budget for the development of the new capital city to be developed in East Kalimantan.
"We also have reserved around Rp27-30 trillion in the next year's APBN for the expenditure of basic infrastructure construction for the new state capital development," Sri Mulyani said.
The allocation of the 2023 state budget will be used to build an office of the Ministry of Transportation, which will play a role in creating connectivity nodes at IKN Nusantara.
President Joko Widodo (Jokowi) earlier said that the government estimated that the total budget requirement for the IKN Nusantara development project will be some Rp466 trillion.
Of the total cost, only 20 percent will be derived from the State Budget, while the remaining 80 percent will be pursued through the Public Private Partnership (KPBU) scheme and the private sector.
Hence, the President asked the Nusantara IKN Authority headed by Bambang Susantono and his deputy Dhony Rahajoe to work agilely and flexibly to obtain funding sources for the development of the new capital city.