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New capital city project could face budget overrun, Tommy says
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Deputy finance minister Thomas Djiwandono speaks to the press in the ministry's Jakarta headquarters on Sep. 11, 2024. (JP/Deni Ghifari)
D
eputy Finance Minister Thomas “Tommy” Djiwandono has admitted that spending on the construction of Nusantara, the future capital city located in East Kalimantan, could exceed the planned budget cap.
Divided into several stages of development until 2045, the future capital city requires an estimated Rp 466 trillion (US$30.82 billion) to build, only about 20 percent, Rp 93 trillion, of which is planned to come from the state coffers, leaving the lion’s share to the private sector.
“From a budget perspective, you’re right [it could pass the 20 percent mark],” said Tommy, who also is president-elect Prabowo Subianto’s nephew, during a media gathering about the 2025 state budget on Wednesday.
“But the detail on the budget overrun today was based on the figure that is out [in public] today so maybe it depends,” he continued, further emphasizing the need to "study the details" and refine the figures of the mega-project.
Read also: Minister seeks extra Rp 20T for Nusantara development next year
The Finance Ministry has earmarked Rp 15 trillion for Nusantara in 2025, the first budget of president-elect Prabowo, who is set to take office on Oct. 20.
The funding is set to be split among two institutions with the Public Works and Housing Ministry receiving Rp 9.11 trillion and the Nusantara Capital City (IKN) Authority Rp 5.89 trillion.
