"The government realizes that due to fiscal limitations, it will not be enough to finance the construction of Nusantara that requires enormous funds," Bappenas' Deputy Minister for Development Funding Scenaider Siahaan stated here on Wednesday.
At the "Opportunities of Investment and Infrastructure Financing in the Capital City of Nusantara" event, he remarked that the government will rely on four sources of funding for the development of Nusantara, namely the state budget (APBN), local government budget (APBD), Public Private Partnership (PPP), and purely from the private sector.
Siahaan remarked that the government will prioritize the PPP scheme for Nusantara's infrastructure development.
According to Siahaan, the PPP scheme can encourage private participation in the development of the capital city's infrastructure.
"The government will prepare a simpler and faster PPP scheme," he stated.
The government will prepare a PPP scheme that has a shorter period for completion of projects, which is six months for projects initiated by the private sector. In addition, the government will grant various incentives to investors, including tax incentives.
Siahaan emphasized that the government is committed to creating a conducive investment climate for Nusantara's development. The government will also ensure legal certainty and consistency in the implementation of Nusantara's development.
"As the law is already in place, we will continue to ensure legal certainty and consistency, and the government's administration (policy implementers) will also support this," he remarked.
The government expected that the attractive financing scheme can boost investors' interest in participating in the Nusantara development.
In addition, he remarked that the increase in investment is important in accelerating Nusantara's development to make it a new center of economic growth in Indonesia.
Related news: Stanford's sustainability school is breakthrough for Nusantara: OIKN
Related news: Nusantara combination of green, smart, and sponge city: Minister
Translator: Arif P, Kenzu Tandiah
Editor: Rahmad Nasution
Copyright © ANTARA 2023
