Deputy Speaker of the House of Representatives (DPR RI) Muhaimin Iskandar has urged the government to devise financing plans for the construction of the new national capital to avoid straining the state budget.
“The government must be consistent in its stand on not placing a great burden on the state budget for the new national capital construction,” Iskandar said, in response to the government’s plan to utilize the state budget and a portion of the National Economic Recovery fund for the new capital’s construction, in Jakarta on Wednesday.
The deputy speaker urged the government to calculate the total funds needed for the new capital’s construction with prudence and to devise short- and long-term funding strategies for the process.
He also suggested that the government prioritize domestic and foreign investment schemes for securing funding and refrain from committing to a long-term loan to prevent any debt burden in the future.
“I also urge the government to prioritize the national budget for priority programs instead, including for the 2022 National Economic Recovery purposes,” Iskandar said.
He also reiterated the parliament’s commitment to monitor the government’s utilization of the state budget and financial plans for the new national capital’s construction.
Earlier, National Development Planning Minister and National Development Planning Agency head, Suharso Monoarfa, had proposed that the funding for the new capital’s construction be sourced from the state budget through a long-term tenor payment scheme.
The rationale for the proposal is that procuring the funds from the state budget will reduce the threat of stalling of the new capital’s construction that will take years to complete, he said.
“To ensure the construction progress is not stalled mid-way, we must devise a financing scheme plan. That is why besides appropriating the state budget, we will also open another financing scheme,” Monoarfa explained.
Source: Antara News