Government Ready To Guarantee Nusantara IKN Project Through KPBU Scheme

President Director of PT Penjaminan Infrastruktur Indonesia (Persero), Muhammad Wahid Sutopo (center) gave an explanation of the KPBU scheme in the IKN Nusantara project in Jakarta, Friday (8/12/2023). (Special)

JAKARTA - The government is boosting the development of the State Capital (IKN) in East Kalimantan. In addition, through the Ministry of Finance (Kemenkeu) it will guarantee the project with a Government and Business Entity Cooperation (KPBU) scheme.

Meanwhile, PT Penjaminan Infrastruktur Indonesia (Persero) or PT PII as the underwriter at IKN has prepared a guarantee scheme.

President Director of PT PII Muhammad Wahid Sutopo explained that his party had prepared an infrastructure project guarantee scheme at IKN which would be regulated through the Minister of Finance Regulation (PMK) and was just waiting for its execution.

"For IKN, the guarantee scheme has been prepared at this time. IKN has its own PMK scheme. Even though it has not yet been executed, the discussion has already begun," he explained at the Media Briefing event at the DJKN Building, Friday, December 8.

Sutopo said that his party would not guarantee all infrastructure projects in IKN. However, it will remain open to investors who want to be involved in IKN development.

"Indeed, not all of our infrastructure is involved, according to the government's needs," he said.

Sutopo explained that the guarantee of IKN projects in the Government Cooperation with Business Entity (PPP) scheme and currently development in IKN is dominated by basic infrastructure.

"Because in terms of stages, the KPBU scheme will take place in the next stage after the basic infrastructure is implemented," he said.

Sutopo said that there are already several investors who are interested in investing in IKN through the KPBU scheme and his party will always be ready to guarantee these projects if needed.

"If a guarantee scheme is needed, currently discussions and preparations have been carried out," he explained.

Sutopo said that previously the government had provided support in the form of PMN injections to increase PII's business capacity and financial capacity in carrying out guarantees.

Since its establishment in 2009 to 2023, PII has received PMN of IDR 10.65 trillion. Of this amount, Rp9.08 trillion is intended for the main mandate guarantee of both the KPBU and non-KPBU schemes, and Rp1.57 trillion in the context of the National Economic Recovery (PEN) assignment.