Presidential candidate Ganjar Pranowo has voiced his stance on the funding of Nusantara's development, Indonesia's new capital city. During his campaign visit to East Kalimantan on December 7, 2023, Ganjar underlined the importance of prioritizing the state budget (APBN) for the growth of national strength and government sector projects. While acknowledging the role of investment as a supportive funding source, he stressed the potential of implementing public-private partnerships (PPPs) with suitable incentives, ease, and certainty for investors.
APBN as the Primary Funding Source
According to Ganjar, the development of state-owned assets should primarily be financed by the APBN. This approach, he believes, would ensure the prioritization of national strength and government sector projects. However, he did not dismiss the role of investment as a supportive funding source, stating that it still plays a significant role in the country's fiscal strategy.
Role of Public-Private Partnerships
Ganjar also highlighted the potential of implementing PPPs, emphasizing the importance of providing appropriate incentives, ease, and certainty for investors. This approach would ensure a balance between the interests of the state and private investors, facilitating a smoother process for the development of Nusantara.
Government's Allocation for Nusantara
Finance Minister Sri Mulyani Indrawati announced that the government has earmarked IDR 40.6 trillion for Nusantara's development in 2024. This allocation is distributed across various ministries, with the largest share going to the Ministry of Public Works and Housing (PUPR). The estimated total budget required for the capital's development is around IDR 450-500 trillion. President Joko Widodo acknowledged that the APBN can only cover about 20% of this funding, with the remaining 80% expected to come from direct investments and PPPs. Business actors' investment is deemed a key pillar for financing Nusantara's development and expansion.