54 Percent of Capital Moving Funds Use the State Budget, Sri Mulyani: Actually There Is No… Page all

JAKARTA, KOMPAS.com – Minister of Finance Sri Mulyani Indrawati emphasized that the funding for the relocation of the State Capital (IKN) to East Kalimantan (Kaltim) to a minimum using the State Revenue and Expenditure Budget (State Budget).

The state treasurer said that the government would focus on funding development through creative schemes, such as the Government and Business Entity Cooperation (PPP) scheme and private/BUMN/BUMD funding schemes.

“When it comes to the budget, let alone the portion of the APBN and others, we will calculate it later. So actually nothing is mentioned today, the pre-conception 54 percent is the APBN,” said Sri Mulyani at the IKN press conference at the Nusantara II Building, DPR RI, Jakarta. , Tuesday (18/1/2022).

Also read: Build the New Capital of the Archipelago, the Government Promises to Avoid Long-Term Debt

The former Managing Director of the World Bank revealed that the government would first see the stages of moving the capital city. In the law, there will be five stages of IKN transfer starting in 2022.

He did not deny that the first phase, which will take place in 2022-2024, is likely to use the state budget more. This year alone, the government has started to budget for the initial funding for IKN and the 2024 General Election.

“The earliest stage is 2022-2024. Usually if front-end yes, the state budget will usually be more,” explained Sri Mulyani.

However, the portion will be balanced with other funding, such as funding for Covid-19, National Economic Recovery (PEN), and other projects that are no less important.

Also read: Held Plenary Session, DPR RI Approves IKN Bill to Become Law

This year’s IKN funding is mostly disbursed to the Ministry of PUPR. The funds are used for basic infrastructure development which has been running in previous years.

“Yesterday with the Minister of PUPR, it was seen from the existing budget allocation and how there was a more urgent need to start the development momentum there. Then we will all see it in the context of the budget,” said Sri Mulyani.

The Minister of National Development Planning (PPN)/Head of Bappenas, Suharso Monoarfa added, the transfer of IKN has the principle of not burdening the State Budget and maintaining fiscal sustainability.

He admitted that he would avoid long-term debt, even though the transfer of IKN is a long-term project that started this year.

“We will maximize the country’s wealth, in fact to make us have more assets. We also avoid long-term debt financing. We will avoid that,” said Suharso.

For information citing the website ikn.go.id, the financing scheme prioritizes a fairly high role for the private sector through Government and Business Entity Cooperation (PPP) of IDR 252.5 trillion (54.2 percent).

Then private investment and BUMN/BUMD (directly) amounted to Rp. 123.2 trillion or 26.4 percent of the total financing needs for the physical development of IKN. The rest is financing from the state budget.

Also read: Minister of PPN Regarding IKN Budget: If Everyone Uses APBN, It’s Too Heavy…

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