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KALTIM - The use of the State Revenue and Expenditure Budget (APBN) for infrastructure development in the Nusantara Capital City (IKN) is carried out to build market confidence.

Head of the IKN Authority, Bambang Susantono, said that when trust is built in the future, many private investments will continue to build.

"In the early stages, the implementation of IKN development did receive an allocation from the State Budget, so from here it is hoped that it will be a lever as well as to create market confidence," said Bambang in Samarinda, East Kalimantan (Kaltim), quoted from Antara, Monday 15 August.

In line with the development that uses the APBN, he said, the government will continue to seek other sources of funding that are legitimate and made possible by laws and regulations. Bambang said that his party also wanted the private sector to play a role in the development of the IKN area.

"New creative financing methods, such as municipal bonds, SDG bonds, or green bonds, are possible alternatives. All of this can be implemented effectively if the capital city of the archipelago has good ESG," he said.

According to him, the enforcement of good governance will maintain the reputation and credibility of the IKN, including the proper handling of the environment, social, and governance (ESG) will greatly determine the success of the IKN development.

He wants to prove that in 2024 there are targets that can be seen, namely there are around 921 hectares that will be equipped, not only building buildings, but also educational facilities, health, cafes, and food stalls.

"Those are a number of targets that we want to achieve in stages, so of course investors will see this as something that will be built sustainably," said Bambang.


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