Deputy Minister of Finance (Wamenkeu) Suahasil Nazara said the State Revenue and Expenditure Budget (APBN) would fund the development of the Central Government Core Area (KIPP) in the State Capital (IKN) of the Archipelago covering an area of 6,600 hectares.
"The commitment from the Ministry of Finance is to continue to support funding and ensure that KIPP does build it with APBN money," Suahasil said in a press conference after visiting the Sepaku Semoi Dam, in Penajem Paser Utara Regency, reported by ANTARA, Friday, July 14.
Meanwhile, larger areas will be built using creative financing schemes, such as blended finance.
Creative financing will be carried out between investors, entrepreneurs, and the state budget. In this scheme, the state budget will focus on infrastructure development and basic networks.
In addition to creative financing, the government also encourages the use of the Government Cooperation scheme with Business Entities (PPP) to accelerate the provision of infrastructure in IKN. The Deputy Minister of Finance revealed that the PPP has been running in several investment units, including several residential houses in IKN.
That way, this step is an example for the Government of Indonesia to be able to build IKN using the KPBU scheme. Starting from the KPBU scheme in IKN, it shows that the private sector has a good interest in participating together with the government to build the archipelago.
The construction of KIPP has now started from the most core area, namely the state palace, the ceremonial field, and several coordinating ministry offices.
According to Suahasil, the development of the core area of IKN is the main picture of Indonesia that will be seen by everyone and characterize development in the country.
In addition to the core area, there is also a Construction Worker Residential (HPK) that has been built and will later be used for office housing when IKN is finished.
"The HPK facility is very complete, I see places of worship, canteens, apartments, and residential houses that have now been used. I hope that with this cellphone, the construction of our IKN will be faster," he said.
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