Public Works Minister Requests Rp20.32tn Additional Budget for Indonesia's New Capital City IKN

TEMPO.CO, Jakarta - Indonesia's Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono has requested an additional budget of Rp20.32 trillion for the development of Indonesia's new capital, Nusantara or IKN, in 2025. Basuki said his ministry had proposed an additional budget to complete the development of IKN in the areas of highway construction, creative works and housing.

"Therefore, we need a budget of Rp24.51 trillion for IKN," Basuki said in a working meeting with Commission V of the Indonesian House of Representatives on Wednesday, August 28, per the DPR Commission V’s YouTube channel.

For now, the budget allocated in the indicative ceiling is Rp4.19 trillion.

In his presentation, Basuki said that the additional budget for the highway construction sector is Rp13.82 trillion. The budget will be used for the construction of IKN Toll Road sections 1A and 1B, 5B, 6A, 6B; partial fulfillment of the needs for the construction of VVIP airport; improvement of the national axis road on the west side of Stage 2 and the east side of Stage 2; construction of road section 6C-1; construction of roads within the central government core area (KIPP), among others.

For the creative works sector, Basuki requested an additional budget of Rp6.25 trillion. The budget will be used for the construction of buildings and areas of the Basilica and Church, the Office of Coordinating Ministry 1, the Office of IKN Authority, the State Mosque, and the construction of sewerage networks.

Finally, Basuki requested an additional budget of Rp250 billion for the housing sector. The budget will be used to continue the construction of vertical TNI housing and the procurement of Harmag on 47 towers of State Civil Servants (ASN) and Defense and Security.

Based on the IKN planning schedule, the construction of the new capital in East Kalimantan will be carried out in 5 stages until 2045. The construction budget is estimated at Rp466 trillion. The government will provide Rp90 trillion from the state budget and the rest will be provided by investors.

In a press conference on the APBN Kita state budget on August 13, Finance Minister Sri Mulyani said that the government had disbursed Rp75 trillion throughout 2022-2024. Sri said that the realization in 2022 was Rp5.5 trillion, which then rose significantly to Rp27 trillion in 2023.

RIRI RAHAYU

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