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IKN Development Can not Only Rely on the State Budget 

Economics editor Dian Kusumo
13/02/2023 16:12 WIB
Head of the Government Goods/Services Procurement Policy Institute (LKPP) Hendrar Prihadi said, to complete the initial stage of the constructio.
IKN Development Can not Only Rely on the State Budget. (Photo: MNC Media)
IKN Development Can not Only Rely on the State Budget. (Photo: MNC Media)

IDXChannel - Head of the Government Goods/Services Procurement Policy Institute (LKPP) Hendrar Prihadi said, to complete the initial stage of the construction of the National Capital City (IKN) of the Archipelago which is targeted for August 17, 2024, it is necessary to have the support provided by all parties. 

Currently, LKPP has made acceleration efforts, especially related to IKN development financing which is believed to be very heavy if it is only sourced from the government budget. He conveyed this in the Launch and Joint Socialization of the PPP Scheme Implementation Regulations at IKN, Thursday (9/2/2023). 

"If you only rely on the state budget, you will definitely have a headache. So that in the financing structure, it is expected that there will be a private role. Where then a PPP financing scheme is established, or government cooperation with business entities," he said in a written statement.

Then, LKPP issued a Regulation of the Government Goods/Services Procurement Policy Institute Number 1 of 2023 concerning Procedures for Procurement of Business Entities through Government Cooperation with Business Entities in the Capital City of the Archipelago. 

"In this LKPP regulation, there are several new innovations initiated to realize a faster, easier, and simpler procurement process. And we also prioritize the use of domestic products and the involvement of micro, small, and cooperative business actors," explained Hendi. 

According to the former Mayor of Semarang, the relocation of the National Capital can have enormous benefits for Indonesia.

"One, from the economic side, the equalization will run, which used to be only concentrated on the island of Java, especially Jakarta, later it will definitely be divided. Second, regarding the quality of life of the community, it will definitely be even better, because currently around 56 percent of Indonesia's population is on the island of Java, so it is very unbalanced," said Hendi. 

"So that the presence of IKN Nusantara will be able to distribute part of the population for the progress of Indonesia," he continued.

"Watch our show IDX Channel Official Youtube on the Market Headlines Program, Friday (10/2/2023) with the theme IKN Development Can not Only Rely on the State Budget. 

(DKH)

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