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Jokowi govt sets final $2.6b tranche for Nusantara next year
Finance Minister Sri Mulyani Indrawati told a press briefing on Wednesday that a little over Rp 40 billion of the 2024 state budget would be allocated to developing the nation's new capital, with 86.2 percent of that fund going toward building vital infrastructure, including government housing.
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Cranes stand on June 8, 2023 as construction continues on the administrative center of Nusantara, the country’s new capital in East Kalimantan. Public Works and Housing Minister Basuki Hadimuljono said on Aug. 16 that work on the State Capital City (IKN) Nusantara development project had reached 30 percent completion. (Antara/Fakhri Hermansyah)
T
he government plans to allocate a staggering Rp 40.6 trillion (US$2.6 billion) in next year’s proposed state budget for the construction of the country’s Nusantara Capital City (IKN) project in East Kalimantan.
At least Rp 35 trillion, or 86.2 percent of the total amount, is earmarked for the Public Works and Housing Ministry to develop vital infrastructure, including a VVIP airport. The remaining funds are designated for other relevant ministries to develop the necessary facilities in the new capital, including a hospital.
Finance Minister Sri Mulyani Indrawati told reporters on Wednesday that the funds were intended to develop critical infrastructure for the nation’s administrative complex, as well as housing for civil servants required to relocate from Jakarta to the new capital.
“Our priority in 2024, ahead of moving the capital, is for us to see that the government complex and supporting [facilities] can be [completed] next year,” Sri Mulyani told a press briefing on the proposed 2024 state budget.
President Joko “Jokowi” Widodo’s second and final term ends in October 2024, which means this is the last year he can direct resources toward erecting the new capital. The President aims to celebrate next year's Indonesian Independence Day in Nusantara.
Read also: President Jokowi orders construction of VVIP airport at Nusantara
Public Works and Housing Minister Basuki Hadimuljono also addressed the briefing on Wednesday, saying that the IKN development project was estimated to cost at least Rp 65.5 trillion between 2022 and 2024.
