This will be a plus pointJakarta (ANTARA) - Presidential Staff Office's (KSP's) main expert Wandy Tuturoong believes that if National Capital Authority (IKN) head overseeing Nusantara's construction has an expansive network covering international institutions and financial sector, then it will support IKN's development.
This expansive network is deemed crucial, as most of the budget sourced for the development of IKN came from Public-Private Partnership (KPBU) and investment to minimize the state budget utilization.
"This will be a plus point," Tuturoong told ANTARA here on Saturday.
President Joko Widodo had earlier stated that 80 percent of the budget for IKN development came from the KPBU scheme and direct investment, while the remaining 20 percent was estimated to be sourced from the state budget.
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This 20-percent funding allocation from the state budget aims to build key government structures, such as the Presidential Palace and ministries' or institutions' buildings.
Moreover, the other important aspect in the formation of the IKN Authority is institutional system and structure because the process to relocate and build the new nation's capital Nusantara will be complicated.
The IKN Authority institutional system and structure will be stipulated within the presidential regulation on IKN Authority as a derivative regulation from Law No. 3 of 2022 on the New Nation's Capital (IKN).
Tuturoong estimated that this regulation on IKN authority will be issued in the near future along with the issuance of the president's decision on inaugurating the IKN authority head.
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He also believes that the IKN authority head will likely be inaugurated by the president next week, although he cannot yet specifically confirm it.
The government had earlier stated that in the near future, nine derivative regulations from the IKN Law will be issued.
The relocation and development of Nusantara, the nation's new capital, will be conducted gradually until completion in 2045.
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Translator: Indra Arief P, Fadhli Ruhman
Editor: Fardah Assegaf
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