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MINISTRY: NEW CAPITAL CITY BUDGET STILL UNCLEAR IN 2022 STATE BUDGET

THE MINISTRY of Finance revealed that it had not budgeted clearly the need for the construction of a new capital city or state capital (IKN). Even so, the state treasurer admitted that he had prepared funds for the big project.

According to the Director General of Budget at the Ministry of Finance, Isa Rachmatarwata, in the press conference of the APBN KiTa, Monday (1/03) he explained that in the draft state budget (RAPBN) 2022, there is no certainty about the nominal IKN project budget.

According to him, there has been no progress so far. We have not budgeted this IKN clearly, explicitly in the 2022 State Budget, because indeed when the State Budget is completed in September 2021, there is no certainty that we will start [the IKN project] 2022 or when.

“Budget certainty in 2022 for the development of the capital city will emerge after there is a bright spot on the IKN law. The Ministry of Finance has prepared an allocation of funds in line with the submission of the project bill to parliament. With the submission of this bill by the president to the House of Representatives (DPR), we have prepared it,” said Isa.

Although there is no clarity on the budget, Isa stated that currently a number of ministries and agencies have carried out various activities in East Kalimantan, the location of the new capital city. The ongoing activities are particularly related to the preparation of infrastructure.

“For example, the Ministry of Public Works and Public Housing has carried out a number of river management projects, providing clean water sources, and building reservoirs. Then, there is also a project to open a transportation route from Balikpapan to the country’s capital,” Isa remarked.

Isa added, a lot has been done and will be planned but not given this title or tag for IKN, but the contribution will be seen for IKN. It will be more concrete after the bill is enacted.

Meanwhile, the Minister of Finance Sri Mulyani Indrawati also stated that the IKN budget would soon be drawn up because the discussion on the regulations for the development of the new capital city was already underway.

“We will see IKN later, yes, because the law has been discussed, but as state treasurer because [the Law] has been discussed, so we also have to participate in preparing it,” Sri Mulyani finished. [sources/photo special]