State Budget to Become IKN Nusantara's Primary Financial Source, Observer Says

JAKARTADAILY.ID - President Joko Widodo previously promised that the construction of the new capital city of Nusantara would only use 20 percent of the state budget or about Rp 30 trillion.

The other 80 percent, he said, would come from collaboration between the government, business entities, and companies.

Finance Minister Sri Mulyani even said the government only reserved a budget of Rp 27-30 trillion from the national budget for IKN construction purposes.

"Around Rp 27 trillion to Rp 30 trillion for the new National Capital City's development spending has been reserved in the next year's national budget," she said.

However, Yayat Supriatna, an infrastructure observer at the Housing and Urban Development Institute, said the state budget will instead be the primary backbone of the construction of the IKN in 2024.

"The state budget is the primary backbone of the IKN for the year 2024," Yayat said, as quoted by Antara.

According to him, this is because the power of the state budget will attract the interest and attention of foreign as well domestic investors.

"With quality infrastructure standards as well as good services, then investors will be interested in investing in the IKN," Yayat said.

The article was translated from Pikiran-Rakyat.com's article titled "Dulu Jokowi Janjikan Hanya 20 Persen, Kini APBN Jadi Tulang Punggung Pembangunan IKN".

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