LPS Prepares Rp3.8 Trillion For Investment In IKN Nusantara

Head of the LPS Board of Commissioners Purbaya Yudhi Sadives. (Photo: Doc. Antara)

JAKARTA - The Deposit Insurance Corporation (LPS) has prepared 250 million dollars (around Rp. 3.8 trillion) to invest in the National Capital City (IKN) of the Archipelago.

Head of the LPS Board of Commissioners, Purbaya Yudhi Sadives, said that the budget would be used to build new infrastructure in IKN located in North Penajam Paser Regency, East Kalimantan.

"According to the law, our headquarter must be in the capital city. So we will move our headquarters to the new capital city," said Purbaya on the sidelines of the Bloomberg CEO Forum which was held ahead of the G20 Summit in Nusa Dua, Bali, Friday.

He revealed that the investment plan has been included in the budget for 2023. In addition to infrastructure assets, most LPS employees will also be transferred to IKN.

However, Purbaya said that until now LPS has not received confirmation whether land will be given in IKN.

"We are still waiting for the land to be obtained or not, but with that much money, IKN officials should be quite tempted," he said.

The process of moving IKN has begun since the inclusion of the IDR 466 trillion project in the 2020-2024 National Medium-Term Development Plan (RPJMN).

The government has also implemented IKN development without leaving heavy burdens on the state budget, because the composition of IKN financing is 20 percent of the state budget and 80 percent of the investment.

Indonesian President Joko Widodo (Jokowi) often shows his seriousness in realizing the relocation of the capital city from Jakarta on the island of Java to the archipelago in East Kalimantan (Kaltim). Jokowi emphasized that IKN will be a showcase or space to show off Indonesia's transformation.

IKN, which is targeted to be completed in 2045, will also be in line with the development towards the ideals of an advanced Indonesia by 2045. At the 100th anniversary of Indonesia's independence, the government targets economic growth to become the world's top five.

In 2045, Gross Domestic Product (GDP) per capita Indonesia is projected to be US $ 23,119.