TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has responded to the proposed Rp2.7 trillion budget increase requested by the Nusantara Capital City (IKN) Authority. The extra funding is slated to support the construction of the project's third phase.
Purbaya stated that he has yet to receive the official funding proposal from the IKN Authority. He also emphasized that he does not know the specific details of the request, noting that the documents may still be winding their way through bureaucratic channels.
"Where did that information come from? The letter has not reached me yet. I don't know of it; maybe it has not arrived," Purbaya said in Yogyakarta on Thursday, July 16, 2026.
The head of the IKN Authority, Basuki Hadimuljono, had previously revealed during a working meeting with House of Representatives Commission II on Thursday, July 16, 2026, that the fresh capital is critical to sustaining the multi-year project through 2028.
Purbaya stated that he would review the budget proposal as soon as he receives the official request. "I will study what it entails, but it has not reached me yet," he said.
He merely noted that any budget allocation would align with the directives of President Prabowo Subianto. "Certainly, I will follow the President's instructions regarding the budget for the IKN," Purbaya said.
During his presentation at the working meeting with House Commission II, Basuki explained that the fresh funds are crucial to sustain the multi-year project through 2028.
The proposed funds are earmarked to finance the physical construction of the third phase, acquire new land, and manage various completed assets in the new capital.
"To realize the development of Batch III and cover the costs of managing completed assets and land acquisition, we have proposed to the Finance Minister an additional budget of Rp2.7 trillion for 2026 under a multi-year scheme 2026-2028," Basuki told lawmakers.
Furthermore, Basuki outlined the financial standing of his agency, noting that the IKN Authority has a regular budget ceiling of Rp5.47 trillion for the 2026 fiscal year.
Out of this total ceiling, capital expenditure accounts for the largest share at Rp4.3 trillion, followed by goods procurement at Rp732.5 billion, and personnel expenses at Rp423 billion.
Regarding the level of budget absorption as of June 30, 2026, the IKN Authority reported that its accrual budget realization has reached 80.2 percent, factoring in all active contractual procurements for goods and services.
However, when measured by actual cash disbursements through Fund Disbursement Orders (SP2D), real spending stands at just Rp1.23 trillion, or 26.2 percent of the total ceiling. Basuki explained that while the actual realization has reached 80.2 percent because all contractual work has been accounted for, actual cash disbursement through SP2D remains at Rp1.23 trillion, or 26.2 percent.
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