Support Development Funding, OIKN Will Prepare Environmentally Friendly Debts

Head of the Archipelago Capital Authority (OIKN) Bambang Susantono. (Photo: Theresia Agatha/VOI)

The Capital Authority of the Archipelago (OIKN) will issue a debt letter to support funding for the development of the State Capital (IKN) of the Archipelago. However, this will not be done in the near future.

"If we want to issue the bonds, it means we have to have an asset balance. So, in about 4-5 years we can only do it," OIKN Chief Bambang Susantono told reporters in Jakarta, Tuesday, September 26.

Bambang said that his party still had to ensure the implementation of environmental, social, and government (ESG) principles to ensure that IKN was built sustainably.

"Then, we also have to comply with the principles of Environmental Social Governance (ESG). That usually takes time," he said.

He said, the underlying assets or basic assets of the issuance of debt securities would be adjusted to the types of programs offered.

If Climate Bond is issued, of course, to support IKN development related to climate change mitigation.

Meanwhile, Bambang continued, there were two other debt securities, namely Gender Bond and Green Bond.

"For example, if a Gender bond, yes, gender bond means programs related to strengthening women, empowering women, it can. Or green ones, everything related to green," he said.

Until now, basic infrastructure development is still being accelerated. Because, on August 17, 2024, President Joko Widodo (Jokowi) will hold an Independence Day Ceremony at IKN.

Later, OIKN ensures that all IKN development concepts will be prepared in a sustainable manner and implement a smart city system.

The entire city planning system will be regulated through a digital system from infrastructure to city transportation.

The Authority also ensures that environmental infrastructure development will be environmentally based, including contributing to reducing carbon emissions.