IKN Development Budget Realization Reaches IDR 11.2 Trillion As Of July 2024

JAKARTA - The Ministry of Finance (Kemenkeu) noted that the realization of the Nusantara State Capital (IKN) development budget, Penajam Paser Utara, East Kalimantan, had been used by more than IDR 11.2 trillion until July 2024.

Minister of Finance Sri Mulyani Indrawati revealed that the Nusantara State Capital (IKN) development budget has been used for IDR 11.2 trillion until July 2024. Or equivalent to 26.4 percent of the total budget allocation in 2024 of IDR 42.5 trillion.

"So what has just been disbursed seems to be Rp11.2 trillion for the 2024 ceiling, which is valued at Rp42.5 trillion, but that doesn't mean that the expenditure will only be Rp11.2 trillion, there will still be absorption, usually accelerated for searches in the third quarter and in the last quarter," Sri Mulyani said at the KiTa State Budget press conference, on Tuesday, August 13.

Sri Mulyani explained that the Ministry of Public Works and Public Housing (PUPR) had revealed that there were around 108 development contracts with a value of Rp. 84.2 trillion.

"Mr. Bas (Minister of PUPR Basuki Hadimuljono) said there were 108 packages worth Rp. 84.2 trillion. It has been contracted. Now it is contracted, it does not mean that the money has come out because they have to deliver and then we pay or there is a contract agreement per term," he explained.

Sri Mulyani said that the total IKN budget allocation for 2022-2024 was recorded at IDR 75 trillion.

With details of the realization in 2022 of IDR 5.5 trillion, then a significant increase of IDR 27 trillion in 2023 and IDR 42.5 trillion in 2024.

"The IKN budget has been allocated starting in 2022, from various designs, planning, to preparation activities. Realization has increased very sharply in 2023, reaching Rp27 trillion," he said.

Sri Mulyani said that the realization for the realization of the infrastructure cluster was recorded at IDR 9 trillion from the ceiling of IDR 39.3 trillion.

The realization of the budget was used for the construction of buildings in the State Palace area, the Coordinating Ministry and other Ministries as well as the IKN Authority (OIKN) building.

The budget is also used for the construction of ASN and Hankam flat towers, ministerial landed houses, and IKN hospitals.

"We also provide additional spending such as spending on VVIP airports, IKN toll roads, IKN Bridge roads, which were already functioning yesterday and some still need to be refined," he explained.

"Then yesterday's water facility, the reservoir that we saw there would be 22 reservoirs for water storage and 30 would be increased to even 60, apart from flood control, Pak Prabowo also said that he would anticipate because around the forest if there was a forest fire disaster, we also have water recovery supplies," he added.

Meanwhile, non-infrastructure clusters were recorded at IDR 2.2 trillion from the budget ceiling of IDR 3.3 trillion.

The budget is used for planning, coordination and preparation of transfers. Then, promotion to socialization of IKN.

Sri Mulyani added that the budget for non-infrastructure clusters also functions for mapping, monitoring, evaluation and OIKN operations.

Apart from the APBN, Sri Mulyani conveyed that the investment that had been included was IDR 56 trillion.

This investment is already groundbreaking like a hotel that is already operating

"So this is also something that requires a lot of budgets other than of course investments that have started to enter Rp56 trillion which was announced by the OIKN chairman, Mr. Basuki, where Rp4.9 trillion yesterday began ground breaking, but others have started walking like hotels that are already operating," he said.