Softbank Withdraws From The IKN Project, PKS Immediately Wants To Call The Head Of The Authority To Ask For An Explanation

JAKARTA - Softbank, a potential investor in the construction of the State Capital (IKN) of the Archipelago, has withdrawn from the project. PKS immediately mobilized votes to immediately summon the Head of the IKN Authority, Bambang Susantono, to ask for an explanation.

"The PKS faction proposes that the DPR RI summon the Head of the IKN Authority to provide an explanation about this, especially about how the IKN Authority plans to then look for new investors for IKN," said Member of Commission V DPR RI Suryadi Jaya Purnama quoted from the parliament's official website, Monday. March 14.

This member of the DPR PKS faction urged the government not to increase the use of the APBN to pursue the development of the State Capital (IKN) project in Penajam Paser Utara, East Kalimantan.

"We from the PKS faction remind the government not to then increase the use of APBN funds for the sake of pursuing the IKN development target on time," continued Suryadi.

He also asked the government to immediately seriously examine the impact of the withdrawal of the investment, especially the percentage of IKN funding sources. This is because finding new investors is not an easy thing.

Moreover, with the Russo-Ukrainian war, there was a global situation in the form of high inflation risk. Iron, steel, and other construction materials, especially imported ones, will experience an increase due to disruptions in global supply chains.

"As a result, the cost of developing IKN will increase significantly," he continued.

He also questioned why the company resigned when the government had appointed the Head and Deputy Head of the IKN Authority, namely Bambang Susantono (from the Asian Development Bank/ADB) and Dhony Rahajoe (from Sinarmas Land), on March 10, 2022. In fact, Law Number 3 of 2022 concerning IKN Article 12 gives special authority to the IKN Authority in the form of granting investment permits, ease of doing business, and providing special facilities to parties who support IKN financing.

In addition, the IKN Master Plan states that the relocation of residents to IKN will begin in 2023 (TNI, Polri, and BIN) and early 2024 (representations of executive, legislative, judicial, and ASN bodies). With a deadline of only 1-2 years, Softbank's resignation is considered to be a bad precedent for potential IKN investors, although Softbank argues that this is an internal strategy to focus more on funding digital startups than on government projects.

"There is no clarity from the government regarding foreign investment opportunity schemes, especially with the public private partnership scheme, as well as political risks and recent uproar about the extension of the president's term of office and the postponement of the 2024 election schedule will make investors choose to wait and see," closed Suryadi.