SoftBank Resigns As IKN Investor, PPP: Don't Let State Budget Replace Investments

JAKARTA - The PPP faction of the DPR RI regrets the withdrawal of SoftBank as one of the investors in the construction of the National Capital of the Archipelago. The reason is that SoftBank's involvement is expected to increase international trust in Indonesia, especially in the development of IKN.

"SoftBank's withdrawal caused IKN to lose an investment value of US$100 billion. The government must immediately look for additional investors to ensure that IKN development is on schedule and at the same time answer public doubts," said Secretary of the PPP faction of the DPR Achmad Baidowi, Sunday, March 13.

The member of Commission VI of the DPR emphasized that Law 3/2022 regarding the IKN financing scheme comes from the APBN and the private sector which is allowed according to statutory provisions. "The government should not replace the canceled SoftBank investment with the APBN. which must be borne by the state budget," he said.

Awiek considered this condition to be the first homework for the duo Bambang Susantono and Dhony Rahajoe as heads and representatives of IKN to ensure the sustainability of the IKN project that is investor-friendly and does not burden the state budget.

Previously, the Head of the National Capital Communications Team (IKN), Sidik Pramono, responded to SoftBank's departure from the new capital city project. Sidik said the government would still rely on funding for the capital mega-project in North Penajam Paser, East Kalimantan, from various sources.

"In principle, IKN development financing can come from the State Budget and other legal sources of funding according to statutory provisions," said Sidik when contacted on Saturday, March 12, 2022.

SoftBank confirmed that the company will not invest in the IKN project. The decision was delivered on Friday, March 11, 2022.

Sidik said that the commitment of investors or parties outside the government regarding IKN financing is still in the early stages. "In the realization later, of course everything will be discussed in more detail with the government," said Sidik.