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THE budget realization for the development of the new capital (IKN) Nusantara this year has reached IDR6.4 trillion (US$417 million) as of August, Finance Minister Sri Mulyani Indrawati has disclosed.
“As of August 31 (2023), the realization of spending on the development of IKN had reached IDR6.4 trillion, or 21.8% of this year’s budget ceiling of IDR29.4 trillion (US$1.9 billion),” she informed at a press conference, which was accessed via virtual means from Jakarta on Wednesday (9/19), 2023.
She explained that the budget realization for Nusantara covered the development of infrastructure and non-infrastructure clusters. The infrastructure cluster covered the state palace and the central government core area (KIPP), residential areas (towers of flats for civil servants), toll roads, and the duplication of the Balang Island Short Span Bridge.
In addition, the budget for the infrastructure cluster was spent on constructing Sepaku Semoi Dam and controlling flood risk in Sepaku, Sanggai, Pemaluan, Saluang, and Tengin rivers.
Meanwhile, the budget for the non-infrastructure cluster was used to support the coordination, preparation, and planning for the transfers to IKN; formulate policy recommendations for ministries/agencies; support the National Police’s security measures; as well as conduct mapping, monitoring, and evaluation activities.
The activities of the IKN Authority were also funded by the non-infrastructure budget. The government has allocated a budget of IDR34.9 trillion (US$2.2 billion) from the State Budget (APBN) for the 2022 and 2023 periods for the development of the new capital city.
The development of IKN cost as much as IDR5.5 trillion (US$358 million) last year. This year, the government has allocated a total of IDR29.4 trillion for IKN. Meanwhile, IDR40.6 trillion (US$2.6 billion) is planned to be allocated for the new capital’s development in the 2024 APBN. [antaranews/photo special]
