North Penajam Paser (ANTARA) - The government is resorting to public-private partnership (PPP) schemes to develop the housing sector in the new capital city (IKN) Nusantara, East Kalimantan Province, according to the Nusantara Capital Authority (OIKN).

Indonesia is currently developing its future seat of government in East Kalimantan's districts of North Penajam Paser and Kutai Kartanegara.

In North Penajam Paser on Friday, OIKN Deputy for Funding and Investment Agung Wicaksono explained that the implementation of PPP schemes aimed at meeting the needs for housing in Nusantara is in line with Government Regulation No. 17 of 2022.

He noted that the regulation governs funding and budget management for the development of Nusantara as well as the implementation of governance in the new capital city.

Wicaksono remarked that the PPP schemes are expected to not only help the government construct residences in Nusantara but also to provide opportunities to business actors, investors, and creditors to take part in developing the city.

He noted that several business actors had submitted letters of intent to the OIKN, conveying their keenness to partake in the development of flats dedicated to civil servants and security personnel.

"The projects are using PPP schemes based on the initiative of business entities," he highlighted.

Before proceeding with a PPP-based project, he stated that the government would initially conduct an assessment of the market interest.

During a market assessment, the government will explain workable PPP schemes in the housing sector to potential business actors, investors, and creditors, he added.

Wicaksono further remarked that such an assessment is important to garner suggestions and responses regarding available projects and attract more parties to partner with the government to develop the housing sector in IKN.

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Translator: Nyaman B, Tegar Nurfitra
Editor: Azis Kurmala
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