Minister Of National Development Planning, Suharso, Proposes New National Capital Development Funded By State Budget With A Long Tenor

JAKARTA - Minister of National Development Planning (PPN)/National Development Planning Agency (Bappenas) Suharso Monoarfa proposed that the construction of the state capital (IKN) be financed with the state budget for long-term tenors.

"The nature of the obligation from the APBN already exists, so we want to avoid that obligation rigidly, but also provide guarantees to be open that the APBN can finance IKN development with long-term schemes," explained Suharso in a working committee meeting (Panja) with a special committee. (Pansus) IKN Bill at the DPR building quoted by Antara, Thursday, January 13.

Suharso reasoned that the purpose of using the APBN with a long tenor was to avoid the construction of the nation's capital from stopping in the middle of the road. Because the IKN development process will take a very long time.

"To provide a guarantee that this development does not stop in the middle of the road, so that there is a budget for financing. That is why what is opened is not only the state budget, what is opened there are financing schemes," said Suharso.

Suharso explained that the government itself has categorized its budget into various obligations. Some of them are for the education budget of 20 percent, health, to special autonomy funds (otsus).

Previously, member of the special committee (Pansus) of the draft of the National Capital City Law (RUU IKN) Guspardi Gaus said the IKN development budget had reached Rp466.9 trillion. However, only 20 percent or Rp90 trillion comes from the state budget (APBN).

Funds amounting to Rp252.5 trillion came from the cooperation between the government and business entities. Then, around Rp123.2 trillion is budgeted through the funding of private schemes or state-owned enterprises (BUMN) and Regional-Owned Enterprises (BUMD).