The Government Guarantees IKN Funding Regulations Gives Certainness Of Results For Investors

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) stated that the Minister of Finance Regulation (PMK) Number 220 of 2022 in the context of accelerating the provision of infrastructure in the capital city of Nusantara (IKN) will encourage the creation of cooperation with business entities and creative financing.

The Director General of Financing and Risk Management of the Ministry of Finance Suminto said PMK 220/2022 is the implementing regulation of Government Regulation (PP) Number 17 of 2022 concerning IKN Funding.

"The involvement of the private sector in financing IKN development must be accompanied by good governance, including ensuring the value of returns on investments made in an accountable, fair and transparent manner," he said in a written statement on Thursday, February 9.

According to Suminto, this implementing regulation is expected to accelerate the provision of infrastructure in IKN according to President Joko Widodo's direction, which mandates 80 percent of private investment to be invited to participate.

"Meanwhile, funding sources from the APBN are more focused on providing basic infrastructure and major government complexes, as well as being a catalyst to attract private funds in IKN development," he said.

Suminto added that sources of funding from outside the APBN need to be optimized either through the implementation of a Government Cooperation with Business Entity (PPP) scheme or a creative financing scheme.

"The scheme needs to maximize the participation of the private sector and attract non-governmental sources of funds to participate in the provision of infrastructure in IKN," he stressed.

For information, PP 17/2022 was also passed down through him the Regulation of the Minister of National Development Planning/Head of Bappenas Number 6 of 2022 concerning Procedures for the Implementation of Government Cooperation and Business Entities in the Archipelago Capital.

As well as the Regulation of the Government Goods/Services Procurement Policy Institute (LKPP) Number 1 of 2023 concerning Procedures for the Procurement of Business Entities through Government Cooperation with Business Entities in the Archipelago Capital.

Bappenas will handle the scope of new arrangements, policies and innovations in an effort to accelerate the implementation of the PPP scheme," he said.

Suminto said that the Ministry of Finance, the Ministry of National Development Planning/Bappenas and LKPP continues to work together in encouraging the acceleration of IKN development for a sustainable economy, equitableness, and strengthening national resilience and governance.