The construction of the new capital in East Kalimantan is underway and is entering phase 1 of development. Funding for the construction of the new capital comes from the state treasury.
However, the government also needs funds from investors in the context of building the capital. Most recently, the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan is busy looking for these investors.
The government conveys that funding for the preparation, development, and transfer of IKN, as well as the implementation of the Special Regional Government for IKN Nusantara, comes from the State Budget and/or other legal sources, following the provisions of the legislation.
This is stated in Article 4 of the draft Government Regulation (RPP) concerning Funding and Budget Management in the Framework of Preparation, Development, and Relocation of the State Capital and the Administration of Regional Government for the Capital of the Archipelago.
In the draft, it is stated that the funding scheme sourced from the Regional Revenue and Expenditure Budget (APBN) can be in the form of spending and/or financing.
The funding scheme is in the form of spending, including funding sourced from non-tax state revenues. Meanwhile, the funding scheme in the form of financing includes funding sourced from state securities.
“State securities as referred to in paragraph (3) include a) State Sharia Securities (SBSN) and b) Government Securities (SUN),” reads Article 5 paragraph 4.
Nevertheless, the implementation of the National Capital City funding scheme originating from the APBN in the form of SUN is carried out following the provisions of the legislation.
Then, in Article 5 paragraph 5, it is stated that funding schemes originating from the APBN and other legitimate sources as referred to in Article 4 include, but are not limited to funding schemes originating from:
First, utilization of State Property (BMN) and/or utilization of Assets Under Control (ADP).
Second, is the use of the Public-Private Partnership (PPP) scheme.
And third, the participation of other parties includes the assignment of business entities whose capital is partly or wholly owned by the state, including state-owned enterprises, strengthening the role of state-owned legal entities and creative funding (financing).
Meanwhile, funding schemes originating from other legal sources by the provisions of the legislation as referred to in Article 4 letter b include but are not limited to funding schemes originating from:
First, private contributions.
Second, creative funding (financing) other than as referred to in paragraph (5) letter c number 3.
And third, the IKN special tax and/or the IKN special levy which is stipulated by the Regulation of the Archipelago Capital Authority after obtaining the approval of the House of Representatives of the Republic of Indonesia.
The funding from the APBN and other legal sources under the provisions of the laws and regulations as referred to in Article 4 is carried out including but not limited to: paying attention to fiscal sustainability and basing the laws and regulations governing the APBN.