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February 7, 2025 | 03:06 pm
TEMPO.CO, Jakarta - Head of the Presidential Communication Office Hasan Nasbi has confirmed that the budget for the development of the Indonesian Capital City, known as IKN is still blocked by the Finance Ministry. However, he emphasized that this does not mean there are no funds allocated for the project.
The budget for IKN's development is simply not yet accessible and currently resides with the Ministry of Public Works and the IKN Authority.
"The budget has not been opened yet. So, the budget is in the IKN Authority and the Ministry of Public Works," said Hasan at the PCO Office, Kwarnas Building, Gambir, Central Jakarta, on Friday, February 7, 2025.
Hasan reaffirmed that President Prabowo Subianto is committed to continuing IKN's development over the next five years and the budget has been prepared. "There is a commitment of Rp48 trillion for the next 5 years," he added.
The government's goals for this period include completing the central government core area, the judicial building area, and the legislative building. "The rest will be pushed for development by the private sector," he said.
Previously, Minister of Public Works (PU) Dody Hanggodo stated that there is no realized budget for the IKN development. He mentioned that he was still finalizing the PU Ministry's budget, which had been reduced to Rp29.57 trillion due to President Prabowo's instructions for greater efficiency.
"The budget (infrastructure budget) is all blocked," Dody said after a meeting with Commission V of the Indonesian House of Representatives (DPR) at the Senayan Parliament Complex on Thursday, February 6, 2024. He added jokingly, "The progress is used to buy lunch for the Minister."
In 2024, the Ministry of Public Works allocated Rp40.29 trillion for the new capital city project in East Kalimantan. This budget was planned to be distributed across four sectors: Water Resources (Rp1.45 trillion); Bina Marga (Rp18.32 trillion); Construction (Rp12.09 trillion); and Housing (Rp8.43 trillion).
Riri Rahayu contributed to the writing of this article.
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