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IKN Authority Signs Financing Scheme Agreement With PT SMI

The Nusantara Capital Authority (IKN Authority) signed a facility agreement for the application of a funding scheme (PPSP) with PT Sarana Multi Infrastruktur (Persero) or PT SMI. IKN Authority chief Bambang Susantono said that the cooperation was carried out in the framework of accelerating the development of IKN, which is targeted to operate in 2024.

Bambang said that the IKN Authority and PT SMI, which is under the auspices of the Ministry of Finance, signed the PPSP agreement on August 25 by IKN Authority’s deputy for funding and investment Agung Wicaksono and PT SMI president director Edwin Shahruzad.

The PPSP is a facility from the Ministry of Finance, as stipulated in Finance Minister’s Regulation (PMK) No.220/2022.

“The PPSP is prepared, provided, and used to support financing the provision of IKN infrastructure in the central government core areas,” Bambang said in his statement on Tuesday evening, August 29.

Facilities are prioritized for projects located within the Development Sub-Areas of 1A, 1B, and 1C. The land area of the 1A Development Sub-Area is 2,876 hectares, 1B has an area size of 2,037 hectares, and 1C is 1,758 hectares.

Bambang claimed that Nusantara would be the first city to have an ESG (environmental, social, and corporate governance) committee. He hopes that the signing of the agreement will allow the IKN Authority to have easier, cheaper funding. He also hopes that the funding agreement will become a trendsetter to be followed by other cities in Indonesia.

Bambang said he was optimistic that through collaboration with selected consultants by PT SMI, the IKN construction will meet its targets in 2024.