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February 12, 2025 | 08:19 pm
TEMPO.CO, Jakarta - This year's budget for the Nusantara Capital City (IKN) Authority was cut by Rp1.15 trillion following a budget restructuring. The initial Budget Implementation List (DIPA) for the 2025 fiscal year was Rp6.395 trillion.
This budget cut aligns with Presidential Instruction No. 1 of 2025. “With an efficiency of Rp1.15 trillion, the allocated budget is now Rp5.042 trillion,” said IKN Authority Head Basuki Hadimuljono during a meeting with Commission II of the House of Representatives (DPR) at Senayan Parliament Building on Wednesday, February 12, 2025.
After the Rp1.15 trillion cut, the remaining budget stands at Rp5.242 trillion, which includes Rp199.985 billion for employee expenses. These remaining funds will be used to finance the management of the IKN facilities and infrastructure built between 2022 and 2024.
“This initial DIPA was established before the closed meeting on January 21, 2025, during which the President approved the IKN Authority's budget of Rp48.8 trillion,” stated the former Minister of Public Works and Housing.
The Rp48.8 trillion IKN budget was set by Prabowo to fund IKN’s development from 2025 to 2029. He made this decision before issuing Presidential Instruction No. 1 of 2025, which he signed the following day on January 22, 2025.
Prabowo allocated Rp48.8 trillion in pursuit of his goal to establish IKN as Indonesia’s political capital by 2028. He also instructed Basuki to complete the development of the new capital's executive, legislative, and judicial zones.
In 2024, the Ministry of Public Works (PU) allocated Rp40.29 trillion for the new capital project in East Kalimantan. This budget was distributed across four sectors: Water Resources (Rp1.45 trillion), Road Maintenance (Rp18.32 trillion), Construction (Rp12.09 trillion), and Housing (Rp8.43 trillion).
However, for 2025, the PU Ministry has not yet disbursed the IKN budget because its own budget remains blocked. As a result, Minister Dody Hanggodo has been unable to report on progress.
“All of that (infrastructure budget) is completely blocked,” Dody said after a meeting with the DPR Commission V on Thursday, February 6, 2024. “It is only enough to cover lunch for the Minister,” he said jokingly.
Hendrik Yaputra contributed to the writing of this article.
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