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Nusantara construction faces delays as govt freezes new capital budget
“How can we speak about progress when we don’t even have the budget [to continue it],” Public Works Minister Dody Hanggodo told reporters after a meeting with the House of Representatives.
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At a standstill: Several coordinating ministries buildings still under construction are seen in the future capital city Nusantara, East Kalimantan, on Aug. 17, 2024, as Indonesia marks its 79th Independence Day. (AFP/Bay Ismoyo)
T
he future capital city Nusantara project has yet to make any progress since the beginning of this year, Public Works Minister Dody Hanggodo said on Thursday, citing that the Finance Ministry has frozen budgets needed to continue its construction in East Kalimantan.
“How can we speak about progress when we don’t even have the budget [to continue it],” Dody told reporters after a meeting with the House of Representatives.
President Prabowo Subianto’s administration on Jan. 21 had committed to earmark as much as Rp 48 trillion (US$2.93 billion) for Nusantara development over the course of the next five years.
The President, however, has recently ordered sweeping budget cuts from all ministries and agencies, aiming to accumulate Rp 306 trillion to fund the administration’s costly priority programs, particularly the free nutritious meals program.
The Public Works Ministry saw its budget slashed from more than Rp 110 trillion to just over Rp 29 trillion.
For now, the ministry will focus on preparing road infrastructures to anticipate travel during Idul Fitri festivities in March, as well as other more “immediate” projects given the ministry’s relatively limited budget.
“We will discuss [the progress of Nusantara] once we are given the budget. What is in front of us now? Idul Fitri. We’ll first make sure that goes smoothly, then we’ll discuss other programs.”
