Softbank Withdraws From IKN Project, Member Of Parliament From PPP: This Is A Challenge For The Bambang Susantono-Dhony Rahajoe Duet

JAKARTA - Softbank, a potential investor for the development of the Indonesian Capital City (IKN) has announced that it is withdrawing from the project. This decision is quite unfortunate for all parties, and will also be a challenge for the Head and Deputy Head of the IKN Authority.

"With the withdrawal of sofatbank, IKN will lose an investment value of USD 100 billion. The government must immediately move to find additional investors to ensure that IKN development is on schedule and at the same time answer public doubts," said Secretary of the DPR PPP faction, Achmad Baidowi, in a written statement, quoted Monday 14 March.

Awiek, as Achmad Baidowi is familiarly called, explained, in Law 3/2022 regarding the IKN financing scheme, it comes from the APBN and the private sector which is allowed according to the provisions of the legislation.

Therefore, the government should not let the government replace the canceled SoftBank investment with the state budget. Although the use of the state budget is allowed, there are still many state affairs that must be borne by the state budget.

"This condition is the first PR of the duet of Bambang Susantono and Dhony Rahajoe who are the Head and Deputy of IKN to ensure the sustainability of the IKN project that is investor-friendly and does not burden the state budget. The public is eagerly waiting for the role of these two figures," he concluded.

As is known, SoftBank Group announced that it will not invest in the construction project of Indonesia's new capital, namely IKN in East Kalimantan. The reason for SoftBank's resignation is not yet known.

"SoftBank continues the project but continues to invest in Indonesia through the Vision Fund portfolio company," said a company spokesman, quoted by Reuters, Friday 12 March.

Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said SoftBank had offered up to US$40 billion or equivalent to Rp573 trillion for the project.