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PRESIDENT Prabowo Subianto will continue the Capital City Development Project (IKN) in fiscal year 2026. This information is included in the official Macroeconomic Framework and Principles of Fiscal Policy (KEM-PPKF) document for 2026, which was submitted by Minister of Finance Sri Mulyani to the House of Representatives (DPR).
The document allocates IDR5.05 trillion to the Authority of the Capital City of Nusantara (OIKN). These funds consist of two main programs: the management support program, which received IDR553 billion, and the strategic area development program, which received IDR4.49 trillion.
In addition to the OIKN budget, the Ministry of Public Works and Public Housing (PUPR) received IDR70 trillion for infrastructure spending in the IKN. This substantial budget is earmarked for various priority infrastructure development programs.
The PUPR Ministry’s budget details include management support programs of IDR5.46 trillion; connectivity infrastructure programs of IDR29.84 trillion; water resource resilience programs of IDR18.83 trillion; vocational education and training programs of IDR11.2 billion; housing programs and settlement areas of IDR3.26 trillion; and strategic infrastructure programs of IDR13.43 trillion.
While it is not explicitly specified which programs are directed to the IKN project, the infrastructure and settlement development projects in the IKN area are primarily managed by the Ministry of Public Works, particularly those related to road connectivity, clean water supply, and ASN housing development.
Sri Mulyani said state spending from 2023 to 2025 grew an average of 5.5% in nominal terms. For the 2024 fiscal year, spending policies focus on improving human resources, strengthening energy security, and developing productive sectors to support long-term economic growth.
She concluded that in the document quoted Wednesday (05/21/2025) that “the realization of state spending in 2024 is mainly influenced by expenditure for the provision of basic services, including health and education; the distribution of various social assistance and subsidized programs; support for the implementation of the 2024 elections and simultaneous local elections; infrastructure development, including the Capital City (IKN); and the increase in the salary of Civil Servant/ Indonesian National Military/National Police.” [kumparan.com/photo special]
