New Capital City Phase I Construction to Cost Up to Rp110tn

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Laila Afifa

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  • TEMPO.CO, Jakarta - Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa on Tuesday said the construction of the central government area in the new capital city, touted as IKN, is expected to cost up to Rp110 trillion. 

    "The budgeting scheme will be sourced from the KPBU (government and business entities partnership), state budget (APBN), and it will be better if added with investments from SOEs," said Suharso at the Bappenas headquarters on January 25.

    The initial development phase, he said, will see the basic infrastructures within the central government area which includes housing districts for state employees.

    The government plans to gradually bring up to 15,000 state employees until 2024 to the new location in East Kalimantan. This is expected to grow up to 33,000 when the first transition phase is completed.

    He said the government is open to accepting investments from the private sector to build supporting facilities such as the commercial sector and healthcare facilities.

    Construction of public infrastructures at the new capital city consisting of public highways, access roads, dams, and ports will also be included in the Rp110 trillion budget.

    Read: Govt to Finalize Perpres Concerning Institutional Authority in New Capital City

    FRANCISCA CHRISTY ROSANA 


     

     

     


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