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Rp23 Trillion State Budget Allocated for New Capital City

30 November -0001 00:00 WIB

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati on Tuesday announced that Rp23.9 trillion has been allocated to the construction of the New Capital City of Nusantara (IKN) from the 2023 State Budget (APBN). Most of the funds, roughly Rp21 trillion, will be used for the capital city’s infrastructure projects. 

As reported earlier, the Minister of Public Works and Housing (PUPR) Basuki Hadimuljono said the Ministry will auction the IKN project construction which is valued at Rp23.7 trillion. 

“The total value is Rp23.7 trillion for around 30 packages,” said Basuki on January 17,

The Minister also assured that the construction process will immediately start as soon as the contract for the capital city base infrastructure is completed as scheduled in 2024. 

The government has classified the areas into a number of sections, one of which is the KIPP or Government Core Area which consists of the Presidential and Vice Presidential office complex, water supplies, sanitation, drainage, national highways, and a toll road connecting the new Capital to Balikpapan.

Construction that will not be sourced from the State Budget will adopt funding schemes that are permitted by the Law, such as investment in international hospitals, integrated educational facilities, office, and service areas, ‘mixed-use’ buildings, commerce, and residential facilities.

The New Capital City of Nusantara has undergone 15 percent of its total construction which consists of water dams, toll roads, and bridges. 

ANTARA 

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