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Budget for new capital remains intact, Basuki Hadimuljono says
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A worker walks in front of the state palace on Nov. 10, 2024, at the government offices complex in the future capital of Nusantara in North Penajam Paser, East Kalimantan. President Prabowo Subianto has said that within the next five years, he will make the new capital city the center of government political activities, where most of his administration’s executive, legislative and judicial activities will take place (Antara Foto/M Risyal Hidayat)
N
usantara Capital City (IKN) Authority chairman Basuki Hadimuljono has confirmed that there will not be a budget cut for the second phase of Nusantara’s development.
At a limited meeting on Jan. 21, the authorities decided that Nusantara’s development would not be affected by the government’s budget efficiency.
Initially, Presidential Instruction No. 1/2025 on efficiency in the state and regional budgets indicated potential cuts for the new capital development.
The IKN Authority then held another limited meeting with President Prabowo Subianto on Monday, in which the President instructed the authority to confirm budget adjustments for the future capital’s development with the Finance Ministry.
"As for the budget, we conveyed it to him [President Prabowo], and he responded that it should be adjusted immediately," Basuki said in a written statement on Tuesday, as reported by liputan6.com.
According to the 2025 Budget Implementation List (DIPA), the IKN Authority’s budget is set at Rp 6.39 trillion (US$390.09 million).
However, the authority will receive an extra Rp 8.1 trillion for the construction of buildings for legislative and judicial institutions.
This followed the completion of the two palaces, Garuda Palace and the State Palace, in the Central Government Area (KIPP).
Previously, Coordinating Infrastructure and Regional Development Minister Agus Harimurti Yudhoyono said the government had allocated Rp 48.8 trillion for Nusantara’s development from 2025 to 2029.
Prabowo aims for Nusantara to become the political capital by 2028.
"So, regarding Nusantara it has been confirmed that the development will continue, and he [the President] has assured us that an estimated budget of around Rp 48.8 trillion will be allocated," Agus said.
Agus added that the current infrastructure development would fully support the achievement of national targets over the next five years, including efforts toward food, energy and water self-sufficiency, as well as improving the quality of life for the people.
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