Sri Mulyani Talks About IKN At The ASEAN Forum, Reveals The Role Of The State Budget In Attracting Private Investment

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani revealed that the Indonesian government is currently building the State Capital (IKN) in Kalimantan.

It was stated that the role of the APBN was very central in the development process in the early stages. He said, state financial instruments are catalyzed in attracting further investment in IKN.

"Indonesia is also building a new capital city in Kalimantan, many of which need public funds (APBN) first so that we can build the infrastructure needed before we can attract the private sector," he said while speaking at the Promoting Sustainable Infrastructure Development seminar in the ASEAN Finance Ministers and Central Bank Government Meeting (AFMGM) agenda series, Thursday, August 24.

The Minister of Finance explained that the basic facilities that become the APBN project in the State Capital include the construction of roads, airports, irrigation facilities, electrical installations, to housing and government buildings.

If you can see that Indonesia has a very large geographical difference. Each region has its own attractiveness. For example, for the island of Java this is more mature because of the density of its population, purchasing power, so the appeal to the private sector is much better," he said.

The Minister of Finance added that for many large islands but small populations, the government has very different challenges in infrastructure development.

"In this context, public sector funding is much more needed. For example, Papua, which of course has different characteristics. In that area it requires more public funding to open airports. So it is clear that government intervention is very important here," he said.

VOI noted that the total IKN development budget channeled through the Ministry of Public Works and Public Housing (PUPR) for the 2022-2024 period reached IDR 65.57 trillion.

Especially for next year's period which has been included in the 2024 State Budget Draft, it is IDR 40.6 trillion.